Correlation Between Templeton Emerging and Kkr Income
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Kkr Income 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 Emerging and Kkr Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Emerging Markets and Kkr Income Opportunities, you can compare the effects of market volatilities on Templeton Emerging and Kkr Income 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 Emerging with a short position of Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Kkr Income.
Diversification Opportunities for Templeton Emerging and Kkr Income
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Kkr is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and Templeton Emerging 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 Emerging Markets are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Kkr Income go up and down completely randomly.
Pair Corralation between Templeton Emerging and Kkr Income
Considering the 90-day investment horizon Templeton Emerging Markets is expected to generate 1.35 times more return on investment than Kkr Income. However, Templeton Emerging is 1.35 times more volatile than Kkr Income Opportunities. It trades about -0.05 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about -0.21 per unit of risk. If you would invest 544.00 in Templeton Emerging Markets on August 31, 2024 and sell it today you would lose (7.00) from holding Templeton Emerging Markets or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Kkr Income Opportunities
Performance |
| Timeline |
| Templeton Emerging |
| Kkr Income Opportunities |
Templeton Emerging and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Kkr Income
The main advantage of trading using opposite Templeton Emerging and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Kkr Income 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 Kkr Income will offset losses from the drop in Kkr Income's long position.| Templeton Emerging vs. MFS Investment Grade | Templeton Emerging vs. Eaton Vance Municipal | Templeton Emerging vs. DTF Tax Free | Templeton Emerging vs. HUMANA INC |
| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Blackrock Muni Intermediate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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