Correlation Between Investec Global and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Investec 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 Investec 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 Investec Global Franchise and Templeton Global Balanced, you can compare the effects of market volatilities on Investec 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 Investec Global with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Global and Templeton Global.
Diversification Opportunities for Investec Global and Templeton Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investec and Templeton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Investec Global Franchise 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 Investec 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 Investec Global Franchise 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 Investec Global i.e., Investec Global and Templeton Global go up and down completely randomly.
Pair Corralation between Investec Global and Templeton Global
Assuming the 90 days horizon Investec Global is expected to generate 1.42 times less return on investment than Templeton Global. In addition to that, Investec Global is 1.24 times more volatile than Templeton Global Balanced. It trades about 0.07 of its total potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.12 per unit of volatility. If you would invest 279.00 in Templeton Global Balanced on September 20, 2025 and sell it today you would earn a total of 11.00 from holding Templeton Global Balanced or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Global Franchise vs. Templeton Global Balanced
Performance |
| Timeline |
| Investec Global Franchise |
| Templeton Global Balanced |
Investec Global and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Global and Templeton Global
The main advantage of trading using opposite Investec Global and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec 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.| Investec Global vs. Rbc Money Market | Investec Global vs. Hsbc Treasury Money | Investec Global vs. Matson Money Equity | Investec Global vs. Tiaa Cref Life Money |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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