Correlation Between Templeton Global and Caixabank Seleccin

Can any of the company-specific risk be diversified away by investing in both Templeton Global and Caixabank Seleccin 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 Caixabank Seleccin 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 Caixabank Seleccin Tendencias, you can compare the effects of market volatilities on Templeton Global and Caixabank Seleccin 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 Caixabank Seleccin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Caixabank Seleccin.

Diversification Opportunities for Templeton Global and Caixabank Seleccin

0.0

Correlation Coefficient

Templeton Global  Caixabank Seleccin

Pay attention - limited upside

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

Pair Corralation between Templeton Global and Caixabank Seleccin

If you would invest (100.00) in Templeton Global Bond on October 1, 2024 and sell it today you would earn a total of  100.00  from holding Templeton Global Bond or generate -100.0% return on investment over 90 days.

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

Templeton Global Bond  vs.  Caixabank Seleccin Tendencias

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.

Caixabank Seleccin

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Caixabank Seleccin Tendencias are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Caixabank Seleccin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Templeton Global and Caixabank Seleccin

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

The idea behind Templeton Global Bond and Caixabank Seleccin Tendencias 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.