Correlation Between Templeton China and Templeton China
Can any of the company-specific risk be diversified away by investing in both Templeton China and Templeton China 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 Templeton China 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 Templeton China World, you can compare the effects of market volatilities on Templeton China and Templeton China 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 Templeton China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton China and Templeton China.
Diversification Opportunities for Templeton China and Templeton China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Templeton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Templeton China World and Templeton China World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton China World 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 Templeton China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton China World has no effect on the direction of Templeton China i.e., Templeton China and Templeton China go up and down completely randomly.
Pair Corralation between Templeton China and Templeton China
If you would invest (100.00) in Templeton China World on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Templeton China World or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton China World vs. Templeton China World
Performance |
| Timeline |
| Templeton China World |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Templeton China World |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Templeton China and Templeton China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton China and Templeton China
The main advantage of trading using opposite Templeton China and Templeton China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton China position performs unexpectedly, Templeton China 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 China will offset losses from the drop in Templeton China's long position.| Templeton China vs. Franklin Fund Allocator | Templeton China vs. Wealthbuilder Conservative Allocation | Templeton China vs. Aqr Diversified Arbitrage | Templeton China vs. Fulcrum Diversified Absolute |
| Templeton China vs. Chartwell Short Duration | Templeton China vs. Artisan High Income | Templeton China vs. Barings High Yield | Templeton China vs. Ab High Income |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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