Correlation Between Templeton Growth and Deutsche Emerging
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Deutsche Emerging 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 Deutsche Emerging 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 Deutsche Emerging Markets, you can compare the effects of market volatilities on Templeton Growth and Deutsche Emerging 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 Deutsche Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Deutsche Emerging.
Diversification Opportunities for Templeton Growth and Deutsche Emerging
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and Deutsche is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Deutsche Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Emerging Markets 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 Deutsche Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Emerging Markets has no effect on the direction of Templeton Growth i.e., Templeton Growth and Deutsche Emerging go up and down completely randomly.
Pair Corralation between Templeton Growth and Deutsche Emerging
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 0.81 times more return on investment than Deutsche Emerging. However, Templeton Growth Fund is 1.24 times less risky than Deutsche Emerging. It trades about 0.07 of its potential returns per unit of risk. Deutsche Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 2,172 in Templeton Growth Fund on September 4, 2024 and sell it today you would earn a total of 640.00 from holding Templeton Growth Fund or generate 29.47% 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. Deutsche Emerging Markets
Performance |
| Timeline |
| Templeton Growth |
| Deutsche Emerging Markets |
Templeton Growth and Deutsche Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Deutsche Emerging
The main advantage of trading using opposite Templeton Growth and Deutsche Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Deutsche Emerging 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 Deutsche Emerging will offset losses from the drop in Deutsche Emerging's long position.| Templeton Growth vs. Prudential Financial Services | Templeton Growth vs. Financials Ultrasector Profund | Templeton Growth vs. Davis Financial Fund | Templeton Growth vs. Fidelity Advisor Financial |
| Deutsche Emerging vs. Baillie Gifford Health | Deutsche Emerging vs. Deutsche Health And | Deutsche Emerging vs. Blackrock Health Sciences | Deutsche Emerging vs. Live Oak Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |