Correlation Between Blue Current and Franklin California
Can any of the company-specific risk be diversified away by investing in both Blue Current and Franklin California 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 Blue Current and Franklin California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Current Global and Franklin California Tax Free, you can compare the effects of market volatilities on Blue Current and Franklin California 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 Blue Current with a short position of Franklin California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Current and Franklin California.
Diversification Opportunities for Blue Current and Franklin California
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blue and Franklin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Blue Current Global and Franklin California Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California Tax and Blue Current 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 Blue Current Global are associated (or correlated) with Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California Tax has no effect on the direction of Blue Current i.e., Blue Current and Franklin California go up and down completely randomly.
Pair Corralation between Blue Current and Franklin California
Assuming the 90 days horizon Blue Current Global is expected to under-perform the Franklin California. In addition to that, Blue Current is 1.74 times more volatile than Franklin California Tax Free. It trades about -0.05 of its total potential returns per unit of risk. Franklin California Tax Free is currently generating about 0.12 per unit of volatility. If you would invest 686.00 in Franklin California Tax Free on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Franklin California Tax Free or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Current Global vs. Franklin California Tax Free
Performance |
| Timeline |
| Blue Current Global |
| Franklin California Tax |
Blue Current and Franklin California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Current and Franklin California
The main advantage of trading using opposite Blue Current and Franklin California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Current position performs unexpectedly, Franklin California 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 California will offset losses from the drop in Franklin California's long position.| Blue Current vs. Franklin Mutual Global | Blue Current vs. Franklin Mutual Global | Blue Current vs. Franklin Mutual Global |
| Franklin California vs. Scharf Global Opportunity | Franklin California vs. Ab Global Bond | Franklin California vs. Blue Current Global | Franklin California vs. Ab Global Risk |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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