Correlation Between Guidepath Servative and Templeton Global

Can any of the company-specific risk be diversified away by investing in both Guidepath Servative 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 Guidepath Servative and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Guidepath Servative Allocation and Templeton Global Balanced, you can compare the effects of market volatilities on Guidepath Servative 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 Guidepath Servative with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Servative and Templeton Global.

Diversification Opportunities for Guidepath Servative and Templeton Global

0.96

Correlation Coefficient

Guidepath Servative  Templeton Global

Almost no diversification

The 3 months correlation between Guidepath and Templeton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Servative Allocation 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 Guidepath Servative 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 Guidepath Servative Allocation 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 Guidepath Servative i.e., Guidepath Servative and Templeton Global go up and down completely randomly.

Pair Corralation between Guidepath Servative and Templeton Global

Assuming the 90 days horizon Guidepath Servative is expected to generate 1.56 times less return on investment than Templeton Global. But when comparing it to its historical volatility, Guidepath Servative Allocation is 1.65 times less risky than Templeton Global. It trades about 0.22 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  256.00  in Templeton Global Balanced on May 11, 2025 and sell it today you would earn a total of  18.00  from holding Templeton Global Balanced or generate 7.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Guidepath Servative Allocation  vs.  Templeton Global Balanced

Guidepath Servative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Servative Allocation are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Guidepath Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Templeton Global Balanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Templeton Global Balanced are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Templeton Global may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Guidepath Servative and Templeton Global

The main advantage of trading using opposite Guidepath Servative and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Servative 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.

The idea behind Guidepath Servative Allocation and Templeton Global Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.