Correlation Between Templeton Emerging and Blkrk Lc
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Blkrk Lc 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 Blkrk Lc 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 Blkrk Lc Cr, you can compare the effects of market volatilities on Templeton Emerging and Blkrk Lc 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 Blkrk Lc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Blkrk Lc.
Diversification Opportunities for Templeton Emerging and Blkrk Lc
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Templeton and Blkrk is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Blkrk Lc Cr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blkrk Lc Cr 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 Blkrk Lc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blkrk Lc Cr has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Blkrk Lc go up and down completely randomly.
Pair Corralation between Templeton Emerging and Blkrk Lc
Assuming the 90 days horizon Templeton Emerging Markets is expected to generate 2.81 times more return on investment than Blkrk Lc. However, Templeton Emerging is 2.81 times more volatile than Blkrk Lc Cr. It trades about 0.07 of its potential returns per unit of risk. Blkrk Lc Cr is currently generating about 0.07 per unit of risk. If you would invest 1,116 in Templeton Emerging Markets on September 12, 2024 and sell it today you would earn a total of 271.00 from holding Templeton Emerging Markets or generate 24.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Blkrk Lc Cr
Performance |
| Timeline |
| Templeton Emerging |
| Blkrk Lc Cr |
Templeton Emerging and Blkrk Lc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Blkrk Lc
The main advantage of trading using opposite Templeton Emerging and Blkrk Lc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Blkrk Lc 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 Blkrk Lc will offset losses from the drop in Blkrk Lc's long position.| Templeton Emerging vs. Guidemark Smallmid Cap | Templeton Emerging vs. Siit Small Mid | Templeton Emerging vs. Mutual Of America | Templeton Emerging vs. Aqr Small Cap |
| Blkrk Lc vs. Prudential Government Income | Blkrk Lc vs. Long Term Government Fund | Blkrk Lc vs. Lord Abbett Government | Blkrk Lc vs. Ridgeworth Seix Government |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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