Correlation Between Evolve Enhanced and Franklin Global
Can any of the company-specific risk be diversified away by investing in both Evolve Enhanced and Franklin Global 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 Evolve Enhanced and Franklin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolve Enhanced Yield and Franklin Global Aggregate, you can compare the effects of market volatilities on Evolve Enhanced and Franklin Global 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 Evolve Enhanced with a short position of Franklin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolve Enhanced and Franklin Global.
Diversification Opportunities for Evolve Enhanced and Franklin Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Evolve and Franklin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Evolve Enhanced Yield and Franklin Global Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Global Aggregate and Evolve Enhanced 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 Evolve Enhanced Yield are associated (or correlated) with Franklin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Global Aggregate has no effect on the direction of Evolve Enhanced i.e., Evolve Enhanced and Franklin Global go up and down completely randomly.
Pair Corralation between Evolve Enhanced and Franklin Global
Assuming the 90 days trading horizon Evolve Enhanced Yield is expected to generate 2.17 times more return on investment than Franklin Global. However, Evolve Enhanced is 2.17 times more volatile than Franklin Global Aggregate. It trades about 0.04 of its potential returns per unit of risk. Franklin Global Aggregate is currently generating about 0.04 per unit of risk. If you would invest 1,801 in Evolve Enhanced Yield on August 28, 2024 and sell it today you would earn a total of 179.00 from holding Evolve Enhanced Yield or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 60.71% |
| Values | Daily Returns |
Evolve Enhanced Yield vs. Franklin Global Aggregate
Performance |
| Timeline |
| Evolve Enhanced Yield |
| Franklin Global Aggregate |
Evolve Enhanced and Franklin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolve Enhanced and Franklin Global
The main advantage of trading using opposite Evolve Enhanced and Franklin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolve Enhanced position performs unexpectedly, Franklin Global 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 Global will offset losses from the drop in Franklin Global's long position.| Evolve Enhanced vs. Evolve Global Healthcare | Evolve Enhanced vs. Evolve Active Core | Evolve Enhanced vs. Evolve Cloud Computing | Evolve Enhanced vs. Evolve Innovation Index |
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 CEOs Directory module to screen CEOs from public companies around the world.
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