Correlation Between Atac Inflation and Franklin Income
Can any of the company-specific risk be diversified away by investing in both Atac Inflation and Franklin Income 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 Atac Inflation and Franklin Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and Franklin Income Fund, you can compare the effects of market volatilities on Atac Inflation and Franklin Income 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 Atac Inflation with a short position of Franklin Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Franklin Income.
Diversification Opportunities for Atac Inflation and Franklin Income
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atac and Franklin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and Franklin Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Income and Atac Inflation 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 Atac Inflation Rotation are associated (or correlated) with Franklin Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Income has no effect on the direction of Atac Inflation i.e., Atac Inflation and Franklin Income go up and down completely randomly.
Pair Corralation between Atac Inflation and Franklin Income
Assuming the 90 days horizon Atac Inflation is expected to generate 3.02 times less return on investment than Franklin Income. In addition to that, Atac Inflation is 3.05 times more volatile than Franklin Income Fund. It trades about 0.01 of its total potential returns per unit of risk. Franklin Income Fund is currently generating about 0.07 per unit of volatility. If you would invest 206.00 in Franklin Income Fund on November 1, 2024 and sell it today you would earn a total of 30.00 from holding Franklin Income Fund or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atac Inflation Rotation vs. Franklin Income Fund
Performance |
| Timeline |
| Atac Inflation Rotation |
| Franklin Income |
Atac Inflation and Franklin Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and Franklin Income
The main advantage of trading using opposite Atac Inflation and Franklin Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation position performs unexpectedly, Franklin Income 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 Income will offset losses from the drop in Franklin Income's long position.| Atac Inflation vs. ATAC Rotation ETF | Atac Inflation vs. Tidal ETF Trust | Atac Inflation vs. Quadratic Interest Rate | Atac Inflation vs. Baron Global Advantage |
| Franklin Income vs. Artisan Developing World | Franklin Income vs. Barings Emerging Markets | Franklin Income vs. Dreyfus Bond Market | Franklin Income vs. Inverse Emerging Markets |
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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