Correlation Between Templeton Emerging and CM AM
Specify exactly 2 symbols:
By analyzing existing cross correlation between Templeton Emerging Mkt and CM AM Monplus NE, you can compare the effects of market volatilities on Templeton Emerging and CM AM 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 CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and CM AM.
Diversification Opportunities for Templeton Emerging and CM AM
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Templeton and 0P0001F96C is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Mkt and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus 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 Mkt are associated (or correlated) with CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and CM AM go up and down completely randomly.
Pair Corralation between Templeton Emerging and CM AM
Assuming the 90 days trading horizon Templeton Emerging Mkt is expected to under-perform the CM AM. In addition to that, Templeton Emerging is 52.45 times more volatile than CM AM Monplus NE. It trades about -0.01 of its total potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.43 per unit of volatility. If you would invest 9,895 in CM AM Monplus NE on September 14, 2024 and sell it today you would earn a total of 723.00 from holding CM AM Monplus NE or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 41.95% |
| Values | Daily Returns |
Templeton Emerging Mkt vs. CM AM Monplus NE
Performance |
| Timeline |
| Templeton Emerging Mkt |
| CM AM Monplus |
Templeton Emerging and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and CM AM
The main advantage of trading using opposite Templeton Emerging and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.| Templeton Emerging vs. Groupama Entreprises N | Templeton Emerging vs. Renaissance Europe C | Templeton Emerging vs. Superior Plus Corp | Templeton Emerging vs. Origin Agritech |
| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM vs. Origin Agritech |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |