Correlation Between Amazon and Franklin Floating
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By analyzing existing cross correlation between Amazon Inc and Franklin Floating Rate, you can compare the effects of market volatilities on Amazon 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 Amazon with a short position of Franklin Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Franklin Floating.
Diversification Opportunities for Amazon and Franklin Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc 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 Amazon 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 Amazon Inc 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 Amazon i.e., Amazon and Franklin Floating go up and down completely randomly.
Pair Corralation between Amazon and Franklin Floating
If you would invest 20,684 in Amazon Inc on September 12, 2024 and sell it today you would earn a total of 2,342 from holding Amazon Inc or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Amazon Inc vs. Franklin Floating Rate
Performance |
| Timeline |
| Amazon Inc |
| Franklin Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amazon and Franklin Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Franklin Floating
The main advantage of trading using opposite Amazon and Franklin Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon 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.The idea behind Amazon Inc and Franklin Floating Rate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Franklin Floating vs. Nordea 1 | Franklin Floating vs. DNB Norge Selektiv | Franklin Floating vs. Handelsbanken Emerging Markets | Franklin Floating vs. KLP AksjeNorge Indeks |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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