Correlation Between Swedbank Robur and Templeton Global

Can any of the company-specific risk be diversified away by investing in both Swedbank Robur and Templeton 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 Swedbank Robur and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swedbank Robur Corporate and Templeton Global Bond, you can compare the effects of market volatilities on Swedbank Robur and Templeton 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 Swedbank Robur with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank Robur and Templeton Global.

Diversification Opportunities for Swedbank Robur and Templeton Global

0.0

Correlation Coefficient

Swedbank Robur  Templeton Global

Pay attention - limited upside

The 3 months correlation between Swedbank and Templeton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank Robur Corporate and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond and Swedbank Robur 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 Swedbank Robur Corporate are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Swedbank Robur i.e., Swedbank Robur and Templeton Global go up and down completely randomly.

Pair Corralation between Swedbank Robur and Templeton Global

If you would invest  934.00  in Swedbank Robur Corporate on September 22, 2024 and sell it today you would earn a total of  45.00  from holding Swedbank Robur Corporate or generate 4.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Swedbank Robur Corporate  vs.  Templeton Global Bond

Swedbank Robur Corporate

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swedbank Robur Corporate are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, Swedbank Robur is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Templeton Global Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Templeton Global Bond has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Templeton Global is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Swedbank Robur and Templeton Global

The main advantage of trading using opposite Swedbank Robur and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank Robur position performs unexpectedly, Templeton 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 Templeton Global will offset losses from the drop in Templeton Global's long position.

The idea behind Swedbank Robur Corporate and Templeton Global Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.