Correlation Between Aquagold International and Franklin Utilities
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and Franklin Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Franklin Utilities Fund, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of Franklin Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Franklin Utilities.
Diversification Opportunities for Aquagold International and Franklin Utilities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Franklin Utilities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Utilities and Aquagold International 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 Aquagold International 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 Aquagold International i.e., Aquagold International and Franklin Utilities go up and down completely randomly.
Pair Corralation between Aquagold International and Franklin Utilities
If you would invest 2,426 in Franklin Utilities Fund on August 31, 2024 and sell it today you would earn a total of 170.00 from holding Franklin Utilities Fund or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Franklin Utilities Fund
Performance |
| Timeline |
| Aquagold International |
| Franklin Utilities |
Aquagold International and Franklin Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Franklin Utilities
The main advantage of trading using opposite Aquagold International and Franklin Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Franklin Utilities vs. Valic Company I | Franklin Utilities vs. Artisan High Income | Franklin Utilities vs. Mesirow Financial High | Franklin Utilities vs. Western Asset High |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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