Correlation Between Templeton Global and Fpa Crescent
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Fpa Crescent 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 Global and Fpa Crescent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Fpa Crescent Fund, you can compare the effects of market volatilities on Templeton Global and Fpa Crescent 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 Global with a short position of Fpa Crescent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Fpa Crescent.
Diversification Opportunities for Templeton Global and Fpa Crescent
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TEMPLETON and Fpa is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Fpa Crescent Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Crescent and Templeton Global 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 Global Bond are associated (or correlated) with Fpa Crescent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Crescent has no effect on the direction of Templeton Global i.e., Templeton Global and Fpa Crescent go up and down completely randomly.
Pair Corralation between Templeton Global and Fpa Crescent
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Fpa Crescent. In addition to that, Templeton Global is 1.3 times more volatile than Fpa Crescent Fund. It trades about -0.16 of its total potential returns per unit of risk. Fpa Crescent Fund is currently generating about 0.13 per unit of volatility. If you would invest 4,226 in Fpa Crescent Fund on August 25, 2024 and sell it today you would earn a total of 65.00 from holding Fpa Crescent Fund or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Fpa Crescent Fund
Performance |
| Timeline |
| Templeton Global Bond |
| Fpa Crescent |
Templeton Global and Fpa Crescent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Fpa Crescent
The main advantage of trading using opposite Templeton Global and Fpa Crescent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Fpa Crescent 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 Fpa Crescent will offset losses from the drop in Fpa Crescent's long position.| Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global |
| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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