Correlation Between Templeton Emerging and Jpmorgan E
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Jpmorgan E 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 Jpmorgan E 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 Jpmorgan E Plus, you can compare the effects of market volatilities on Templeton Emerging and Jpmorgan E 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 Jpmorgan E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Jpmorgan E.
Diversification Opportunities for Templeton Emerging and Jpmorgan E
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Templeton and Jpmorgan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Jpmorgan E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Plus 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 Jpmorgan E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Plus has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Jpmorgan E go up and down completely randomly.
Pair Corralation between Templeton Emerging and Jpmorgan E
Assuming the 90 days horizon Templeton Emerging Markets is expected to generate 1.84 times more return on investment than Jpmorgan E. However, Templeton Emerging is 1.84 times more volatile than Jpmorgan E Plus. It trades about 0.08 of its potential returns per unit of risk. Jpmorgan E Plus is currently generating about 0.07 per unit of risk. If you would invest 1,223 in Templeton Emerging Markets on September 4, 2024 and sell it today you would earn a total of 150.00 from holding Templeton Emerging Markets or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Jpmorgan E Plus
Performance |
| Timeline |
| Templeton Emerging |
| Jpmorgan E Plus |
Templeton Emerging and Jpmorgan E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Jpmorgan E
The main advantage of trading using opposite Templeton Emerging and Jpmorgan E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Jpmorgan E 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 Jpmorgan E will offset losses from the drop in Jpmorgan E's long position.| Templeton Emerging vs. Templeton Developing Markets | Templeton Emerging vs. Franklin Mutual Global | Templeton Emerging vs. Templeton Foreign Fund | Templeton Emerging vs. Templeton Foreign Fund |
| Jpmorgan E vs. Dreyfusstandish Global Fixed | Jpmorgan E vs. Transamerica Funds | Jpmorgan E vs. Maryland Tax Free Bond | Jpmorgan E vs. Blrc Sgy Mnp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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