Correlation Between Aquagold International and Franklin Low
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Franklin Low 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 Low 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 Low Duration, you can compare the effects of market volatilities on Aquagold International and Franklin Low 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 Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Franklin Low.
Diversification Opportunities for Aquagold International and Franklin Low
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 Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Low Duration 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 Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Low Duration has no effect on the direction of Aquagold International i.e., Aquagold International and Franklin Low go up and down completely randomly.
Pair Corralation between Aquagold International and Franklin Low
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Franklin Low. In addition to that, Aquagold International is 35.08 times more volatile than Franklin Low Duration. It trades about -0.02 of its total potential returns per unit of risk. Franklin Low Duration is currently generating about 0.17 per unit of volatility. If you would invest 838.00 in Franklin Low Duration on August 29, 2024 and sell it today you would earn a total of 63.00 from holding Franklin Low Duration or generate 7.52% 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 Low Duration
Performance |
| Timeline |
| Aquagold International |
| Franklin Low Duration |
Aquagold International and Franklin Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Franklin Low
The main advantage of trading using opposite Aquagold International and Franklin Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Franklin Low 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 Low will offset losses from the drop in Franklin Low's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Franklin Low vs. Permanent Portfolio Class | Franklin Low vs. HUMANA INC | Franklin Low vs. Aquagold International | Franklin Low vs. Barloworld Ltd ADR |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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