Correlation Between Touchstone Ultra and Templeton Growth
Can any of the company-specific risk be diversified away by investing in both Touchstone Ultra and Templeton Growth 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 Touchstone Ultra and Templeton Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Ultra Short and Templeton Growth Fund, you can compare the effects of market volatilities on Touchstone Ultra and Templeton Growth 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 Touchstone Ultra with a short position of Templeton Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Ultra and Templeton Growth.
Diversification Opportunities for Touchstone Ultra and Templeton Growth
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Touchstone and Templeton is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Ultra Short and Templeton Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Growth and Touchstone Ultra 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 Touchstone Ultra Short are associated (or correlated) with Templeton Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Growth has no effect on the direction of Touchstone Ultra i.e., Touchstone Ultra and Templeton Growth go up and down completely randomly.
Pair Corralation between Touchstone Ultra and Templeton Growth
Assuming the 90 days horizon Touchstone Ultra is expected to generate 29.33 times less return on investment than Templeton Growth. But when comparing it to its historical volatility, Touchstone Ultra Short is 17.29 times less risky than Templeton Growth. It trades about 0.13 of its potential returns per unit of risk. Templeton Growth Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,657 in Templeton Growth Fund on November 8, 2024 and sell it today you would earn a total of 85.00 from holding Templeton Growth Fund or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Ultra Short vs. Templeton Growth Fund
Performance |
| Timeline |
| Touchstone Ultra Short |
| Templeton Growth |
Touchstone Ultra and Templeton Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Ultra and Templeton Growth
The main advantage of trading using opposite Touchstone Ultra and Templeton Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Ultra position performs unexpectedly, Templeton Growth 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 Templeton Growth will offset losses from the drop in Templeton Growth's long position.| Touchstone Ultra vs. Qs Moderate Growth | Touchstone Ultra vs. Lifestyle Ii Moderate | Touchstone Ultra vs. Franklin Lifesmart Retirement | Touchstone Ultra vs. Blackrock Moderate Prepared |
| Templeton Growth vs. Virtus Convertible | Templeton Growth vs. Lord Abbett Convertible | Templeton Growth vs. Fidelity Sai Convertible | Templeton Growth vs. Allianzgi Convertible Income |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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