Correlation Between Aquagold International and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Franklin Lifesmart 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 Lifesmart 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 Lifesmart 2040, you can compare the effects of market volatilities on Aquagold International and Franklin Lifesmart 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 Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Franklin Lifesmart.
Diversification Opportunities for Aquagold International and Franklin Lifesmart
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 Lifesmart 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 2040 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 Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart 2040 has no effect on the direction of Aquagold International i.e., Aquagold International and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Aquagold International and Franklin Lifesmart
If you would invest 1,366 in Franklin Lifesmart 2040 on September 1, 2024 and sell it today you would earn a total of 147.00 from holding Franklin Lifesmart 2040 or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Aquagold International vs. Franklin Lifesmart 2040
Performance |
| Timeline |
| Aquagold International |
| Franklin Lifesmart 2040 |
Aquagold International and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Franklin Lifesmart
The main advantage of trading using opposite Aquagold International and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Franklin Lifesmart 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 Lifesmart will offset losses from the drop in Franklin Lifesmart'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 Lifesmart vs. Blackrock Government Bond | Franklin Lifesmart vs. Prudential Government Income | Franklin Lifesmart vs. Dunham Porategovernment Bond | Franklin Lifesmart vs. Short Term Government Fund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |