Correlation Between Templeton Emerging and Oakhurst Fixed
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging and Oakhurst Fixed 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 Oakhurst Fixed 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 Oakhurst Fixed Income, you can compare the effects of market volatilities on Templeton Emerging and Oakhurst Fixed 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 Oakhurst Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Oakhurst Fixed.
Diversification Opportunities for Templeton Emerging and Oakhurst Fixed
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Templeton and Oakhurst is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Oakhurst Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Fixed Income 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 Oakhurst Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Fixed Income has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Oakhurst Fixed go up and down completely randomly.
Pair Corralation between Templeton Emerging and Oakhurst Fixed
Assuming the 90 days horizon Templeton Emerging Markets is expected to under-perform the Oakhurst Fixed. In addition to that, Templeton Emerging is 1.74 times more volatile than Oakhurst Fixed Income. It trades about -0.06 of its total potential returns per unit of risk. Oakhurst Fixed Income is currently generating about -0.06 per unit of volatility. If you would invest 891.00 in Oakhurst Fixed Income on September 4, 2024 and sell it today you would lose (10.00) from holding Oakhurst Fixed Income or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Oakhurst Fixed Income
Performance |
| Timeline |
| Templeton Emerging |
| Oakhurst Fixed Income |
Templeton Emerging and Oakhurst Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Oakhurst Fixed
The main advantage of trading using opposite Templeton Emerging and Oakhurst Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, Oakhurst Fixed 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 Oakhurst Fixed will offset losses from the drop in Oakhurst Fixed'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 |
| Oakhurst Fixed vs. Templeton Emerging Markets | Oakhurst Fixed vs. Angel Oak Multi Strategy | Oakhurst Fixed vs. Legg Mason Partners | Oakhurst Fixed vs. T Rowe Price |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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