Correlation Between Templeton Global and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Mfs Emerging 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 Mfs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Balanced and Mfs Emerging Markets, you can compare the effects of market volatilities on Templeton Global and Mfs Emerging 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Mfs Emerging.
Diversification Opportunities for Templeton Global and Mfs Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Mfs is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Balanced and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets 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 Balanced are associated (or correlated) with Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Templeton Global i.e., Templeton Global and Mfs Emerging go up and down completely randomly.
Pair Corralation between Templeton Global and Mfs Emerging
Assuming the 90 days horizon Templeton Global Balanced is expected to generate 2.07 times more return on investment than Mfs Emerging. However, Templeton Global is 2.07 times more volatile than Mfs Emerging Markets. It trades about 0.11 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.13 per unit of risk. If you would invest 272.00 in Templeton Global Balanced on June 9, 2025 and sell it today you would earn a total of 7.00 from holding Templeton Global Balanced or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Balanced vs. Mfs Emerging Markets
Performance |
| Timeline |
| Templeton Global Balanced |
| Mfs Emerging Markets |
Templeton Global and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Mfs Emerging
The main advantage of trading using opposite Templeton Global and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Mfs Emerging 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 Mfs Emerging will offset losses from the drop in Mfs Emerging's long position.| Templeton Global vs. Metropolitan West High | Templeton Global vs. The Hartford Floating | Templeton Global vs. Ab Global Risk | Templeton Global vs. Ab Global Risk |
| Mfs Emerging vs. Vanguard Strategic Small Cap | Mfs Emerging vs. Lord Abbett Diversified | Mfs Emerging vs. Legg Mason Bw | Mfs Emerging vs. Blackrock Diversified Fixed |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |