Correlation Between Great Western and Franklin Floating
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By analyzing existing cross correlation between Great Western Mining and Franklin Floating Rate, you can compare the effects of market volatilities on Great Western 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 Great Western with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Western and Franklin Floating.
Diversification Opportunities for Great Western and Franklin Floating
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Franklin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Great Western Mining 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 Great Western 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 Great Western Mining 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 Great Western i.e., Great Western and Franklin Floating go up and down completely randomly.
Pair Corralation between Great Western and Franklin Floating
Assuming the 90 days trading horizon Great Western Mining is expected to generate 245.57 times more return on investment than Franklin Floating. However, Great Western is 245.57 times more volatile than Franklin Floating Rate. It trades about 0.29 of its potential returns per unit of risk. Franklin Floating Rate is currently generating about 0.36 per unit of risk. If you would invest 0.05 in Great Western Mining on August 30, 2024 and sell it today you would earn a total of 0.10 from holding Great Western Mining or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Great Western Mining vs. Franklin Floating Rate
Performance |
| Timeline |
| Great Western Mining |
| Franklin Floating Rate |
Great Western and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Western and Franklin Floating
The main advantage of trading using opposite Great Western and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Western 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.| Great Western vs. Bank of Ireland | Great Western vs. Ryanair Holdings plc | Great Western vs. Donegal Investment Group | Great Western vs. Dalata Hotel Group |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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