Correlation Between Templeton Foreign and Calvert Balanced
Can any of the company-specific risk be diversified away by investing in both Templeton Foreign and Calvert Balanced 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 Foreign and Calvert Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Foreign Fund and Calvert Balanced Portfolio, you can compare the effects of market volatilities on Templeton Foreign and Calvert Balanced 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 Foreign with a short position of Calvert Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Foreign and Calvert Balanced.
Diversification Opportunities for Templeton Foreign and Calvert Balanced
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Calvert is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Foreign Fund and Calvert Balanced Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Balanced Por and Templeton Foreign 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 Foreign Fund are associated (or correlated) with Calvert Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Balanced Por has no effect on the direction of Templeton Foreign i.e., Templeton Foreign and Calvert Balanced go up and down completely randomly.
Pair Corralation between Templeton Foreign and Calvert Balanced
Assuming the 90 days horizon Templeton Foreign Fund is expected to generate 1.77 times more return on investment than Calvert Balanced. However, Templeton Foreign is 1.77 times more volatile than Calvert Balanced Portfolio. It trades about 0.23 of its potential returns per unit of risk. Calvert Balanced Portfolio is currently generating about 0.31 per unit of risk. If you would invest 803.00 in Templeton Foreign Fund on April 26, 2025 and sell it today you would earn a total of 98.00 from holding Templeton Foreign Fund or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Foreign Fund vs. Calvert Balanced Portfolio
Performance |
| Timeline |
| Templeton Foreign |
| Calvert Balanced Por |
Templeton Foreign and Calvert Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Foreign and Calvert Balanced
The main advantage of trading using opposite Templeton Foreign and Calvert Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Foreign position performs unexpectedly, Calvert Balanced 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 Calvert Balanced will offset losses from the drop in Calvert Balanced's long position.| Templeton Foreign vs. Fa 529 Aggressive | Templeton Foreign vs. Iaadx | Templeton Foreign vs. Fbanjx | Templeton Foreign vs. Balanced Fund Retail |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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