Correlation Between Asg Managed and Franklin Utilities
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Franklin Utilities 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 Utilities 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 Utilities Fund, you can compare the effects of market volatilities on Asg Managed and Franklin Utilities 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 Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Franklin Utilities.
Diversification Opportunities for Asg Managed and Franklin Utilities
-0.45 | Correlation Coefficient |
Very good 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 Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Utilities 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 Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Utilities has no effect on the direction of Asg Managed i.e., Asg Managed and Franklin Utilities go up and down completely randomly.
Pair Corralation between Asg Managed and Franklin Utilities
Assuming the 90 days horizon Asg Managed is expected to generate 1.08 times less return on investment than Franklin Utilities. But when comparing it to its historical volatility, Asg Managed Futures is 2.06 times less risky than Franklin Utilities. It trades about 0.04 of its potential returns per unit of risk. Franklin Utilities Fund is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,259 in Franklin Utilities Fund on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Utilities Fund or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Managed Futures vs. Franklin Utilities Fund
Performance |
| Timeline |
| Asg Managed Futures |
| Franklin Utilities |
Asg Managed and Franklin Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Franklin Utilities
The main advantage of trading using opposite Asg Managed and Franklin Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Franklin Utilities 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 Utilities will offset losses from the drop in Franklin Utilities' long position.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
| Franklin Utilities vs. Davis Government Bond | Franklin Utilities vs. Federated Government Income | Franklin Utilities vs. Schwab Government Money | Franklin Utilities vs. Federated Government Income |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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