Correlation Between Templeton Growth and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Neuberger Berman 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 Growth and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Neuberger Berman Emerging, you can compare the effects of market volatilities on Templeton Growth and Neuberger Berman 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 Growth with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Neuberger Berman.
Diversification Opportunities for Templeton Growth and Neuberger Berman
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and Neuberger is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Neuberger Berman Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Emerging and Templeton Growth 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 Growth Fund are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Emerging has no effect on the direction of Templeton Growth i.e., Templeton Growth and Neuberger Berman go up and down completely randomly.
Pair Corralation between Templeton Growth and Neuberger Berman
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 0.84 times more return on investment than Neuberger Berman. However, Templeton Growth Fund is 1.19 times less risky than Neuberger Berman. It trades about 0.21 of its potential returns per unit of risk. Neuberger Berman Emerging is currently generating about -0.23 per unit of risk. If you would invest 2,731 in Templeton Growth Fund on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Templeton Growth Fund or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Growth Fund vs. Neuberger Berman Emerging
Performance |
| Timeline |
| Templeton Growth |
| Neuberger Berman Emerging |
Templeton Growth and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Neuberger Berman
The main advantage of trading using opposite Templeton Growth and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Templeton Growth vs. Boston Partners Small | Templeton Growth vs. American Century Etf | Templeton Growth vs. Fpa Queens Road | Templeton Growth vs. Ultrasmall Cap Profund Ultrasmall Cap |
| Neuberger Berman vs. Franklin Mutual Global | Neuberger Berman vs. Templeton Growth Fund | Neuberger Berman vs. Franklin Real Estate | Neuberger Berman vs. HUMANA INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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