Correlation Between Surgical Science and Franklin Libertyshares
Can any of the company-specific risk be diversified away by investing in both Surgical Science and Franklin Libertyshares 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 Surgical Science and Franklin Libertyshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Surgical Science Sweden and Franklin Libertyshares ICAV, you can compare the effects of market volatilities on Surgical Science and Franklin Libertyshares 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 Surgical Science with a short position of Franklin Libertyshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Surgical Science and Franklin Libertyshares.
Diversification Opportunities for Surgical Science and Franklin Libertyshares
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Surgical and Franklin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Surgical Science Sweden and Franklin Libertyshares ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Libertyshares and Surgical Science 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 Surgical Science Sweden are associated (or correlated) with Franklin Libertyshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Libertyshares has no effect on the direction of Surgical Science i.e., Surgical Science and Franklin Libertyshares go up and down completely randomly.
Pair Corralation between Surgical Science and Franklin Libertyshares
Assuming the 90 days trading horizon Surgical Science Sweden is expected to generate 4.5 times more return on investment than Franklin Libertyshares. However, Surgical Science is 4.5 times more volatile than Franklin Libertyshares ICAV. It trades about 0.35 of its potential returns per unit of risk. Franklin Libertyshares ICAV is currently generating about 0.11 per unit of risk. If you would invest 11,700 in Surgical Science Sweden on September 13, 2024 and sell it today you would earn a total of 3,050 from holding Surgical Science Sweden or generate 26.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Surgical Science Sweden vs. Franklin Libertyshares ICAV
Performance |
| Timeline |
| Surgical Science Sweden |
| Franklin Libertyshares |
Surgical Science and Franklin Libertyshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Surgical Science and Franklin Libertyshares
The main advantage of trading using opposite Surgical Science and Franklin Libertyshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surgical Science position performs unexpectedly, Franklin Libertyshares 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 Franklin Libertyshares will offset losses from the drop in Franklin Libertyshares' long position.| Surgical Science vs. Verizon Communications | Surgical Science vs. The Mercantile Investment | Surgical Science vs. Sabre Insurance Group | Surgical Science vs. Charter Communications Cl |
| Franklin Libertyshares vs. Franklin LibertyQ Global | Franklin Libertyshares vs. Franklin Libertyshares ICAV | Franklin Libertyshares vs. Franklin FTSE Asia | Franklin Libertyshares vs. Franklin FTSE Brazil |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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