Correlation Between Templeton Growth and Tfa Alphagen
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Tfa Alphagen 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 Growth and Tfa Alphagen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Tfa Alphagen Growth, you can compare the effects of market volatilities on Templeton Growth and Tfa Alphagen 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 Growth with a short position of Tfa Alphagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Tfa Alphagen.
Diversification Opportunities for Templeton Growth and Tfa Alphagen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Templeton and Tfa is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth and Templeton Growth 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 Growth Fund are associated (or correlated) with Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of Templeton Growth i.e., Templeton Growth and Tfa Alphagen go up and down completely randomly.
Pair Corralation between Templeton Growth and Tfa Alphagen
Assuming the 90 days horizon Templeton Growth is expected to generate 1.77 times less return on investment than Tfa Alphagen. But when comparing it to its historical volatility, Templeton Growth Fund is 1.13 times less risky than Tfa Alphagen. It trades about 0.05 of its potential returns per unit of risk. Tfa Alphagen Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Tfa Alphagen Growth on October 26, 2024 and sell it today you would earn a total of 331.00 from holding Tfa Alphagen Growth or generate 40.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Templeton Growth Fund vs. Tfa Alphagen Growth
Performance |
| Timeline |
| Templeton Growth |
| Tfa Alphagen Growth |
Templeton Growth and Tfa Alphagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Tfa Alphagen
The main advantage of trading using opposite Templeton Growth and Tfa Alphagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Tfa Alphagen 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 Tfa Alphagen will offset losses from the drop in Tfa Alphagen's long position.| Templeton Growth vs. T Rowe Price | Templeton Growth vs. Guidemark Large Cap | Templeton Growth vs. Rational Strategic Allocation | Templeton Growth vs. Oppenheimer Global Allocation |
| Tfa Alphagen vs. Fisher Large Cap | Tfa Alphagen vs. Upright Assets Allocation | Tfa Alphagen vs. Calvert Moderate Allocation | Tfa Alphagen vs. Neiman Large Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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