Correlation Between Templeton Emerging and Oberweis China
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Oberweis 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 Emerging and Oberweis China 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 Oberweis China Opportunities, you can compare the effects of market volatilities on Templeton Emerging and Oberweis 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 Emerging with a short position of Oberweis China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Oberweis China.
Diversification Opportunities for Templeton Emerging and Oberweis China
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Templeton and OBERWEIS is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Oberweis China Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oberweis China Oppor 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 Oberweis China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oberweis China Oppor has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Oberweis China go up and down completely randomly.
Pair Corralation between Templeton Emerging and Oberweis China
Assuming the 90 days horizon Templeton Emerging Markets is expected to generate 0.31 times more return on investment than Oberweis China. However, Templeton Emerging Markets is 3.24 times less risky than Oberweis China. It trades about -0.18 of its potential returns per unit of risk. Oberweis China Opportunities is currently generating about -0.12 per unit of risk. If you would invest 1,392 in Templeton Emerging Markets on September 4, 2024 and sell it today you would lose (26.00) from holding Templeton Emerging Markets or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Oberweis China Opportunities
Performance |
| Timeline |
| Templeton Emerging |
| Oberweis China Oppor |
Templeton Emerging and Oberweis China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Oberweis China
The main advantage of trading using opposite Templeton Emerging and Oberweis China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Oberweis 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 Oberweis China will offset losses from the drop in Oberweis China'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 |
| Oberweis China vs. Northern Small Cap | Oberweis China vs. Blackrock Sm Cap | Oberweis China vs. T Rowe Price | Oberweis China vs. Harbor Diversified International |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |