Correlation Between DNB Global and Franklin Floating
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By analyzing existing cross correlation between DNB Global Indeks and Franklin Floating Rate, you can compare the effects of market volatilities on DNB Global 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 DNB Global with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of DNB Global and Franklin Floating.
Diversification Opportunities for DNB Global and Franklin Floating
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DNB and Franklin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding DNB Global 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 DNB 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 DNB Global 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 DNB Global i.e., DNB Global and Franklin Floating go up and down completely randomly.
Pair Corralation between DNB Global and Franklin Floating
Assuming the 90 days trading horizon DNB Global Indeks is expected to generate 6.65 times more return on investment than Franklin Floating. However, DNB Global is 6.65 times more volatile than Franklin Floating Rate. It trades about 0.11 of its potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.27 per unit of risk. If you would invest 50,104 in DNB Global Indeks on November 2, 2024 and sell it today you would earn a total of 28,816 from holding DNB Global Indeks or generate 57.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DNB Global Indeks vs. Franklin Floating Rate
Performance |
| Timeline |
| DNB Global Indeks |
| Franklin Floating Rate |
DNB Global and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DNB Global and Franklin Floating
The main advantage of trading using opposite DNB Global and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DNB Global 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.| DNB Global vs. DNB Norge Selektiv | DNB Global vs. DNB Kjernekraft A | DNB Global vs. KLP AksjeNorge Indeks | DNB Global vs. Storebrand Global Solutions |
| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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