Correlation Between Templeton Global and Jpmorgan Strategic
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Jpmorgan Strategic 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 Jpmorgan Strategic 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 Jpmorgan Strategic Income, you can compare the effects of market volatilities on Templeton Global and Jpmorgan Strategic 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 Jpmorgan Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Jpmorgan Strategic.
Diversification Opportunities for Templeton Global and Jpmorgan Strategic
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Templeton and Jpmorgan is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding TEMPLETON GLOBAL BOND and JPMORGAN STRATEGIC INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Strategic Income 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 Jpmorgan Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Strategic Income has no effect on the direction of Templeton Global i.e., Templeton Global and Jpmorgan Strategic go up and down completely randomly.
Pair Corralation between Templeton Global and Jpmorgan Strategic
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Jpmorgan Strategic. In addition to that, Templeton Global is 3.58 times more volatile than Jpmorgan Strategic Income. It trades about -0.04 of its total potential returns per unit of risk. Jpmorgan Strategic Income is currently generating about 0.08 per unit of volatility. If you would invest 1,137 in Jpmorgan Strategic Income on December 29, 2023 and sell it today you would earn a total of 5.00 from holding Jpmorgan Strategic Income or generate 0.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 97.67% |
Values | Daily Returns |
TEMPLETON GLOBAL BOND vs. JPMORGAN STRATEGIC INCOME
Performance |
Timeline |
Templeton Global Bond |
Jpmorgan Strategic Income |
Templeton Global and Jpmorgan Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Templeton Global and Jpmorgan Strategic
The main advantage of trading using opposite Templeton Global and Jpmorgan Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Jpmorgan Strategic 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 Jpmorgan Strategic will offset losses from the drop in Jpmorgan Strategic's long position.Templeton Global vs. USCF Gold Strategy | Templeton Global vs. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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