Correlation Between Aquagold International and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Franklin Mutual 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 Mutual 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 Mutual Shares, you can compare the effects of market volatilities on Aquagold International and Franklin Mutual 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 Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Franklin Mutual.
Diversification Opportunities for Aquagold International and Franklin Mutual
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 Mutual Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Shares 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 Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Shares has no effect on the direction of Aquagold International i.e., Aquagold International and Franklin Mutual go up and down completely randomly.
Pair Corralation between Aquagold International and Franklin Mutual
If you would invest 2,718 in Franklin Mutual Shares on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Franklin Mutual Shares or generate 2.69% 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 Mutual Shares
Performance |
| Timeline |
| Aquagold International |
| Franklin Mutual Shares |
Aquagold International and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Franklin Mutual
The main advantage of trading using opposite Aquagold International and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual'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 Mutual vs. Saat E Market | Franklin Mutual vs. Saat Aggressive Strategy | Franklin Mutual vs. HUMANA INC | Franklin Mutual vs. Aquagold International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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