Correlation Between Templeton China and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Templeton China and Ab Municipal 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 Templeton China and Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton China World and Ab Municipal Bond, you can compare the effects of market volatilities on Templeton China and Ab Municipal 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 Templeton China with a short position of Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton China and Ab Municipal.
Diversification Opportunities for Templeton China and Ab Municipal
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and AUNCX is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Templeton China World and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond and Templeton China 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 Templeton China World are associated (or correlated) with Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Templeton China i.e., Templeton China and Ab Municipal go up and down completely randomly.
Pair Corralation between Templeton China and Ab Municipal
If you would invest 823.00 in Templeton China World on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Templeton China World or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.63% |
| Values | Daily Returns |
Templeton China World vs. Ab Municipal Bond
Performance |
| Timeline |
| Templeton China World |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ab Municipal Bond |
Templeton China and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton China and Ab Municipal
The main advantage of trading using opposite Templeton China and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton China position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| Templeton China vs. Ab Municipal Bond | Templeton China vs. Bbh Intermediate Municipal | Templeton China vs. Nuveen Strategic Municipal | Templeton China vs. Virtus Seix Government |
| Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Global E | Ab Municipal vs. Ab Minnesota Portfolio |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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