Correlation Between KLP Framtid and Franklin Floating
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By analyzing existing cross correlation between KLP Framtid and Franklin Floating Rate, you can compare the effects of market volatilities on KLP Framtid 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 Framtid with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Framtid and Franklin Floating.
Diversification Opportunities for KLP Framtid and Franklin Floating
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between KLP and Franklin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding KLP Framtid 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 Framtid 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 Framtid 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 Framtid i.e., KLP Framtid and Franklin Floating go up and down completely randomly.
Pair Corralation between KLP Framtid and Franklin Floating
Assuming the 90 days trading horizon KLP Framtid is expected to generate 7.39 times more return on investment than Franklin Floating. However, KLP Framtid is 7.39 times more volatile than Franklin Floating Rate. It trades about 0.25 of its potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.63 per unit of risk. If you would invest 235,035 in KLP Framtid on September 2, 2024 and sell it today you would earn a total of 7,321 from holding KLP Framtid or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Framtid vs. Franklin Floating Rate
Performance |
| Timeline |
| KLP Framtid |
| Franklin Floating Rate |
KLP Framtid and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Framtid and Franklin Floating
The main advantage of trading using opposite KLP Framtid and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Framtid 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 Framtid vs. KLP AksjeNorge Indeks | KLP Framtid vs. KLP Aksje Fremvoksende | KLP Framtid vs. KLP AksjeEuropa Indeks | KLP Framtid vs. KLP AksjeGlobal Indeks |
| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Dalata Hotel Group | Franklin Floating vs. Uniphar Group PLC |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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