Correlation Between Asg Managed and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Franklin Federal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Asg Managed and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and Franklin Federal Tax Free, you can compare the effects of market volatilities on Asg Managed and Franklin Federal 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 Asg Managed with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Franklin Federal.
Diversification Opportunities for Asg Managed and Franklin Federal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asg and Franklin is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Franklin Federal Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Tax and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Franklin Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Tax has no effect on the direction of Asg Managed i.e., Asg Managed and Franklin Federal go up and down completely randomly.
Pair Corralation between Asg Managed and Franklin Federal
Assuming the 90 days horizon Asg Managed Futures is expected to generate 1.68 times more return on investment than Franklin Federal. However, Asg Managed is 1.68 times more volatile than Franklin Federal Tax Free. It trades about 0.17 of its potential returns per unit of risk. Franklin Federal Tax Free is currently generating about 0.16 per unit of risk. If you would invest 852.00 in Asg Managed Futures on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Asg Managed Futures or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Managed Futures vs. Franklin Federal Tax Free
Performance |
| Timeline |
| Asg Managed Futures |
| Franklin Federal Tax |
Asg Managed and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Franklin Federal
The main advantage of trading using opposite Asg Managed and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Franklin Federal 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 Federal will offset losses from the drop in Franklin Federal's long position.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. American Beacon Ahl |
| Franklin Federal vs. Matson Money Equity | Franklin Federal vs. First American Funds | Franklin Federal vs. Janus Investment | Franklin Federal vs. Transamerica Funds |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |