Correlation Between Storebrand Global and Franklin Floating
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By analyzing existing cross correlation between Storebrand Global Solutions and Franklin Floating Rate, you can compare the effects of market volatilities on Storebrand 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 Storebrand Global with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and Franklin Floating.
Diversification Opportunities for Storebrand Global and Franklin Floating
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Storebrand and Franklin is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions 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 Storebrand 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 Storebrand Global Solutions 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 Storebrand Global i.e., Storebrand Global and Franklin Floating go up and down completely randomly.
Pair Corralation between Storebrand Global and Franklin Floating
Assuming the 90 days trading horizon Storebrand Global Solutions is expected to under-perform the Franklin Floating. In addition to that, Storebrand Global is 9.48 times more volatile than Franklin Floating Rate. It trades about -0.03 of its total potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.31 per unit of volatility. If you would invest 1,828 in Franklin Floating Rate on August 26, 2024 and sell it today you would earn a total of 10.00 from holding Franklin Floating Rate or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Storebrand Global Solutions vs. Franklin Floating Rate
Performance |
| Timeline |
| Storebrand Global |
| Franklin Floating Rate |
Storebrand Global and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and Franklin Floating
The main advantage of trading using opposite Storebrand Global and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand 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.| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Dalata Hotel Group |
| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Dalata Hotel Group | Franklin Floating vs. Uniphar Group PLC | Franklin Floating vs. KLP Aksje Fremvoksende |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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