Correlation Between KLP Aksje and Franklin Floating
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By analyzing existing cross correlation between KLP Aksje Fremvoksende and Franklin Floating Rate, you can compare the effects of market volatilities on KLP Aksje 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 Aksje with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLP Aksje and Franklin Floating.
Diversification Opportunities for KLP Aksje and Franklin Floating
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KLP and Franklin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KLP Aksje Fremvoksende 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 Aksje 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 Aksje Fremvoksende 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 Aksje i.e., KLP Aksje and Franklin Floating go up and down completely randomly.
Pair Corralation between KLP Aksje and Franklin Floating
Assuming the 90 days trading horizon KLP Aksje Fremvoksende is expected to under-perform the Franklin Floating. In addition to that, KLP Aksje is 8.02 times more volatile than Franklin Floating Rate. It trades about -0.05 of its total potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.36 per unit of volatility. If you would invest 1,826 in Franklin Floating Rate on August 30, 2024 and sell it today you would earn a total of 13.00 from holding Franklin Floating Rate or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLP Aksje Fremvoksende vs. Franklin Floating Rate
Performance |
| Timeline |
| KLP Aksje Fremvoksende |
| Franklin Floating Rate |
KLP Aksje and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLP Aksje and Franklin Floating
The main advantage of trading using opposite KLP Aksje and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLP Aksje 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 Aksje vs. KLP AksjeGlobal Flerfaktor | KLP Aksje vs. KLP AksjeEuropa Indeks | KLP Aksje vs. KLP AksjeGlobal Indeks | KLP Aksje vs. KLP AksjeUSA Indeks |
| Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions | Franklin Floating vs. Nordea 1 | Franklin Floating vs. Nordnet One Forsiktig |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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