Correlation Between Templeton Global and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Aim Investment 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 Aim Investment 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 Aim Investment Securities, you can compare the effects of market volatilities on Templeton Global and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Aim Investment.
Diversification Opportunities for Templeton Global and Aim Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Templeton and Aim is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Aim Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Securities 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Securities has no effect on the direction of Templeton Global i.e., Templeton Global and Aim Investment go up and down completely randomly.
Pair Corralation between Templeton Global and Aim Investment
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Aim Investment. In addition to that, Templeton Global is 1.15 times more volatile than Aim Investment Securities. It trades about 0.0 of its total potential returns per unit of risk. Aim Investment Securities is currently generating about 0.07 per unit of volatility. If you would invest 1,932 in Aim Investment Securities on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Aim Investment Securities or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Aim Investment Securities
Performance |
| Timeline |
| Templeton Global Bond |
| Aim Investment Securities |
Templeton Global and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Aim Investment
The main advantage of trading using opposite Templeton Global and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Templeton Global vs. Blackrock Science Technology | Templeton Global vs. Pgim Jennison Technology | Templeton Global vs. Dreyfus Technology Growth | Templeton Global vs. Science Technology Fund |
| Aim Investment vs. Blackrock Gbl Alloc | Aim Investment vs. Ivy Asset Strategy | Aim Investment vs. Fpa Crescent Fund | Aim Investment vs. Templeton Global Bond |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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