Correlation Between Multisector Bond and Templeton International
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Templeton International 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 Multisector Bond and Templeton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Templeton International Bond, you can compare the effects of market volatilities on Multisector Bond and Templeton International 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 Multisector Bond with a short position of Templeton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Templeton International.
Diversification Opportunities for Multisector Bond and Templeton International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multisector and Templeton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Templeton International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton International and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Templeton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton International has no effect on the direction of Multisector Bond i.e., Multisector Bond and Templeton International go up and down completely randomly.
Pair Corralation between Multisector Bond and Templeton International
Assuming the 90 days horizon Multisector Bond Sma is expected to generate 0.98 times more return on investment than Templeton International. However, Multisector Bond Sma is 1.02 times less risky than Templeton International. It trades about 0.28 of its potential returns per unit of risk. Templeton International Bond is currently generating about 0.07 per unit of risk. If you would invest 1,379 in Multisector Bond Sma on June 12, 2025 and sell it today you would earn a total of 67.00 from holding Multisector Bond Sma or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 67.21% |
| Values | Daily Returns |
Multisector Bond Sma vs. Templeton International Bond
Performance |
| Timeline |
| Multisector Bond Sma |
| Templeton International |
Risk-Adjusted Performance
Mild
Weak | Strong |
Multisector Bond and Templeton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Templeton International
The main advantage of trading using opposite Multisector Bond and Templeton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Templeton International 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 International will offset losses from the drop in Templeton International's long position.| Multisector Bond vs. Msift High Yield | Multisector Bond vs. Mesirow Financial High | Multisector Bond vs. Blackrock High Income | Multisector Bond vs. T Rowe Price |
| Templeton International vs. Qs Global Equity | Templeton International vs. Gmo Global Equity | Templeton International vs. The Gabelli Global | Templeton International vs. Ab Global Bond |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |