Correlation Between Templeton Growth and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Hartford Schroders 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 Hartford Schroders 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 Hartford Schroders Emerging, you can compare the effects of market volatilities on Templeton Growth and Hartford Schroders 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 Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Hartford Schroders.
Diversification Opportunities for Templeton Growth and Hartford Schroders
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and HARTFORD is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Hartford Schroders Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders 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 Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of Templeton Growth i.e., Templeton Growth and Hartford Schroders go up and down completely randomly.
Pair Corralation between Templeton Growth and Hartford Schroders
Assuming the 90 days horizon Templeton Growth is expected to generate 1.02 times less return on investment than Hartford Schroders. But when comparing it to its historical volatility, Templeton Growth Fund is 1.23 times less risky than Hartford Schroders. It trades about 0.08 of its potential returns per unit of risk. Hartford Schroders Emerging is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,498 in Hartford Schroders Emerging on September 4, 2024 and sell it today you would earn a total of 219.00 from holding Hartford Schroders Emerging or generate 14.62% 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. Hartford Schroders Emerging
Performance |
| Timeline |
| Templeton Growth |
| Hartford Schroders |
Templeton Growth and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Hartford Schroders
The main advantage of trading using opposite Templeton Growth and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Hartford Schroders 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 Hartford Schroders will offset losses from the drop in Hartford Schroders' 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 |
| Hartford Schroders vs. Hartford Schroders Emerging | Hartford Schroders vs. Causeway Emerging Markets | Hartford Schroders vs. John Hancock Disciplined | Hartford Schroders vs. Edgewood Growth Fund |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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