Correlation Between Alphacentric Symmetry and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Alphacentric Symmetry and Templeton Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Alphacentric Symmetry and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphacentric Symmetry Strategy and Templeton Global Balanced, you can compare the effects of market volatilities on Alphacentric Symmetry and Templeton Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Alphacentric Symmetry with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphacentric Symmetry and Templeton Global.
Diversification Opportunities for Alphacentric Symmetry and Templeton Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alphacentric and Templeton is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Symmetry Strategy and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced and Alphacentric Symmetry is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Alphacentric Symmetry Strategy are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Balanced has no effect on the direction of Alphacentric Symmetry i.e., Alphacentric Symmetry and Templeton Global go up and down completely randomly.
Pair Corralation between Alphacentric Symmetry and Templeton Global
Assuming the 90 days horizon Alphacentric Symmetry Strategy is expected to under-perform the Templeton Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Alphacentric Symmetry Strategy is 1.17 times less risky than Templeton Global. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Templeton Global Balanced is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Templeton Global Balanced on October 19, 2024 and sell it today you would earn a total of 4.00 from holding Templeton Global Balanced or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Alphacentric Symmetry Strategy vs. Templeton Global Balanced
Performance |
| Timeline |
| Alphacentric Symmetry |
| Templeton Global Balanced |
Alphacentric Symmetry and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphacentric Symmetry and Templeton Global
The main advantage of trading using opposite Alphacentric Symmetry and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphacentric Symmetry position performs unexpectedly, Templeton Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Templeton Global will offset losses from the drop in Templeton Global's long position.The idea behind Alphacentric Symmetry Strategy and Templeton Global Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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