Correlation Between Dws Global and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Dws Global 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 Dws Global and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Global Macro and Templeton Global Balanced, you can compare the effects of market volatilities on Dws Global 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 Dws Global with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Global and Templeton Global.
Diversification Opportunities for Dws Global and Templeton Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dws and Templeton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dws Global Macro and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced and Dws 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 Dws Global Macro 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 Balanced has no effect on the direction of Dws Global i.e., Dws Global and Templeton Global go up and down completely randomly.
Pair Corralation between Dws Global and Templeton Global
Assuming the 90 days horizon Dws Global Macro is expected to generate 0.59 times more return on investment than Templeton Global. However, Dws Global Macro is 1.69 times less risky than Templeton Global. It trades about 0.27 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.15 per unit of risk. If you would invest 1,072 in Dws Global Macro on July 20, 2025 and sell it today you would earn a total of 62.00 from holding Dws Global Macro or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Global Macro vs. Templeton Global Balanced
Performance |
| Timeline |
| Dws Global Macro |
| Templeton Global Balanced |
Dws Global and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Global and Templeton Global
The main advantage of trading using opposite Dws Global and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Global 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.| Dws Global vs. Deutsche Gnma Fund | Dws Global vs. Deutsche Short Term Municipal | Dws Global vs. Deutsche Short Term Municipal | Dws Global vs. Deutsche Science And |
| Templeton Global vs. Arrow Managed Futures | Templeton Global vs. Altegris Futures Evolution | Templeton Global vs. Asg Managed Futures | Templeton Global vs. The Hartford Inflation |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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