Correlation Between Templeton Global and Ab Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Ab Global 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 Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Balanced and Ab Global Bond, you can compare the effects of market volatilities on Templeton Global and Ab Global 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 Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Ab Global.
Diversification Opportunities for Templeton Global and Ab Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Templeton and ANAGX is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Balanced and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond 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 Balanced are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Templeton Global i.e., Templeton Global and Ab Global go up and down completely randomly.
Pair Corralation between Templeton Global and Ab Global
Assuming the 90 days horizon Templeton Global Balanced is expected to under-perform the Ab Global. In addition to that, Templeton Global is 2.46 times more volatile than Ab Global Bond. It trades about -0.01 of its total potential returns per unit of risk. Ab Global Bond is currently generating about 0.01 per unit of volatility. If you would invest 685.00 in Ab Global Bond on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Ab Global Bond or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Balanced vs. Ab Global Bond
Performance |
| Timeline |
| Templeton Global Balanced |
| Ab Global Bond |
Templeton Global and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Ab Global
The main advantage of trading using opposite Templeton Global and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Templeton Global vs. Morningstar Defensive Bond | Templeton Global vs. Ambrus Core Bond | Templeton Global vs. Old Westbury Municipal | Templeton Global vs. Dws Government Money |
| Ab Global vs. Prudential High Yield | Ab Global vs. Neuberger Berman Income | Ab Global vs. Lord Abbett Short | Ab Global vs. Siit High Yield |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |