Correlation Between Templeton Growth and Vanguard Target
Can any of the company-specific risk be diversified away by investing in both Templeton Growth and Vanguard Target 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 Growth and Vanguard Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Growth Fund and Vanguard Target Retirement, you can compare the effects of market volatilities on Templeton Growth and Vanguard Target 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 Growth with a short position of Vanguard Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Growth and Vanguard Target.
Diversification Opportunities for Templeton Growth and Vanguard Target
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Templeton and Vanguard is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Growth Fund and Vanguard Target Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Target Reti and Templeton Growth 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 Growth Fund are associated (or correlated) with Vanguard Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Target Reti has no effect on the direction of Templeton Growth i.e., Templeton Growth and Vanguard Target go up and down completely randomly.
Pair Corralation between Templeton Growth and Vanguard Target
Assuming the 90 days horizon Templeton Growth Fund is expected to generate 1.14 times more return on investment than Vanguard Target. However, Templeton Growth is 1.14 times more volatile than Vanguard Target Retirement. It trades about 0.08 of its potential returns per unit of risk. Vanguard Target Retirement is currently generating about 0.09 per unit of risk. If you would invest 3,010 in Templeton Growth Fund on August 28, 2025 and sell it today you would earn a total of 120.00 from holding Templeton Growth Fund or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Templeton Growth Fund vs. Vanguard Target Retirement
Performance |
| Timeline |
| Templeton Growth |
| Vanguard Target Reti |
Templeton Growth and Vanguard Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Growth and Vanguard Target
The main advantage of trading using opposite Templeton Growth and Vanguard Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Growth position performs unexpectedly, Vanguard Target 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 Vanguard Target will offset losses from the drop in Vanguard Target's long position.| Templeton Growth vs. Sterling Capital Behavioral | Templeton Growth vs. Transamerica Large Cap | Templeton Growth vs. Siit Large Cap | Templeton Growth vs. Dana Large Cap |
| Vanguard Target vs. Ultrasmall Cap Profund Ultrasmall Cap | Vanguard Target vs. Small Cap Value Profund | Vanguard Target vs. Small Cap Growth Profund | Vanguard Target vs. Mid Cap Value Profund |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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