Correlation Between Amg River and Franklin Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Amg River and Franklin Pennsylvania 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 Amg River and Franklin Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Franklin Pennsylvania Tax Free, you can compare the effects of market volatilities on Amg River and Franklin Pennsylvania 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 Amg River with a short position of Franklin Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Franklin Pennsylvania.
Diversification Opportunities for Amg River and Franklin Pennsylvania
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and Franklin is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Franklin Pennsylvania Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Pennsylvania and Amg River 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 Amg River Road are associated (or correlated) with Franklin Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Pennsylvania has no effect on the direction of Amg River i.e., Amg River and Franklin Pennsylvania go up and down completely randomly.
Pair Corralation between Amg River and Franklin Pennsylvania
Assuming the 90 days horizon Amg River Road is expected to generate 4.16 times more return on investment than Franklin Pennsylvania. However, Amg River is 4.16 times more volatile than Franklin Pennsylvania Tax Free. It trades about 0.4 of its potential returns per unit of risk. Franklin Pennsylvania Tax Free is currently generating about 0.17 per unit of risk. If you would invest 1,584 in Amg River Road on September 4, 2024 and sell it today you would earn a total of 199.00 from holding Amg River Road or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg River Road vs. Franklin Pennsylvania Tax Free
Performance |
| Timeline |
| Amg River Road |
| Franklin Pennsylvania |
Amg River and Franklin Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Franklin Pennsylvania
The main advantage of trading using opposite Amg River and Franklin Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Franklin Pennsylvania 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 Pennsylvania will offset losses from the drop in Franklin Pennsylvania's long position.| Amg River vs. Alger Smallcap Growth | Amg River vs. Deutsche Global Real | Amg River vs. Amg River Road | Amg River vs. Delaware Value Fund |
| Franklin Pennsylvania vs. Qs Large Cap | Franklin Pennsylvania vs. Qs Large Cap | Franklin Pennsylvania vs. Dana Large Cap | Franklin Pennsylvania vs. Vela Large Cap |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |