Correlation Between Bitcoin and Franklin
Can any of the company-specific risk be diversified away by investing in both Bitcoin and Franklin 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 Bitcoin and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin and Franklin Government Money, you can compare the effects of market volatilities on Bitcoin and Franklin 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 Bitcoin with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Franklin.
Diversification Opportunities for Bitcoin and Franklin
Pay attention - limited upside
The 3 months correlation between Bitcoin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Bitcoin 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 Bitcoin are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Bitcoin i.e., Bitcoin and Franklin go up and down completely randomly.
Pair Corralation between Bitcoin and Franklin
If you would invest 9,568,019 in Bitcoin on October 26, 2024 and sell it today you would earn a total of 845,981 from holding Bitcoin or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Bitcoin vs. Franklin Government Money
Performance |
| Timeline |
| Bitcoin |
| Franklin Government Money |
Bitcoin and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin and Franklin
The main advantage of trading using opposite Bitcoin and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Franklin 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 will offset losses from the drop in Franklin's long position.The idea behind Bitcoin and Franklin Government Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Franklin vs. Dws Government Money | Franklin vs. Blrc Sgy Mnp | Franklin vs. Morningstar Defensive Bond | Franklin vs. Ab Bond Inflation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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