Correlation Between KLP AksjeGlobal and Franklin Floating
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By analyzing existing cross correlation between KLP AksjeGlobal Indeks and Franklin Floating Rate, you can compare the effects of market volatilities on KLP AksjeGlobal and Franklin Floating 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 KLP AksjeGlobal with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP AksjeGlobal and Franklin Floating.
Diversification Opportunities for KLP AksjeGlobal and Franklin Floating
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KLP and Franklin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding KLP AksjeGlobal Indeks and Franklin Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Floating Rate and KLP AksjeGlobal 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 KLP AksjeGlobal Indeks are associated (or correlated) with Franklin Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Floating Rate has no effect on the direction of KLP AksjeGlobal i.e., KLP AksjeGlobal and Franklin Floating go up and down completely randomly.
Pair Corralation between KLP AksjeGlobal and Franklin Floating
Assuming the 90 days trading horizon KLP AksjeGlobal Indeks is expected to generate 5.54 times more return on investment than Franklin Floating. However, KLP AksjeGlobal is 5.54 times more volatile than Franklin Floating Rate. It trades about 0.12 of its potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.26 per unit of risk. If you would invest 285,269 in KLP AksjeGlobal Indeks on November 28, 2024 and sell it today you would earn a total of 134,873 from holding KLP AksjeGlobal Indeks or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP AksjeGlobal Indeks vs. Franklin Floating Rate
Performance |
| Timeline |
| KLP AksjeGlobal Indeks |
| Franklin Floating Rate |
KLP AksjeGlobal and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP AksjeGlobal and Franklin Floating
The main advantage of trading using opposite KLP AksjeGlobal and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP AksjeGlobal position performs unexpectedly, Franklin Floating 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 Floating will offset losses from the drop in Franklin Floating's long position.| KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. Franklin Floating Rate | KLP AksjeGlobal vs. KLP Aksje Fremvoksende |
| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions | Franklin Floating vs. Nordea 1 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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