Correlation Between Templeton Global and Barings Global
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Barings 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 Barings 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 Barings Global Floating, you can compare the effects of market volatilities on Templeton Global and Barings 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 Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Barings Global.
Diversification Opportunities for Templeton Global and Barings Global
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Templeton and Barings is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Balanced and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating 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 Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Templeton Global i.e., Templeton Global and Barings Global go up and down completely randomly.
Pair Corralation between Templeton Global and Barings Global
If you would invest 241.00 in Templeton Global Balanced on November 5, 2024 and sell it today you would earn a total of 7.00 from holding Templeton Global Balanced or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Balanced vs. Barings Global Floating
Performance |
| Timeline |
| Templeton Global Balanced |
| Barings Global Floating |
Templeton Global and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Barings Global
The main advantage of trading using opposite Templeton Global and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Barings 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 Barings Global will offset losses from the drop in Barings Global's long position.| Templeton Global vs. Barings Emerging Markets | Templeton Global vs. Vy Jpmorgan Emerging | Templeton Global vs. Balanced Strategy Fund | Templeton Global vs. Investec Emerging Markets |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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