Correlation Between Barings Active and Franklin India
Can any of the company-specific risk be diversified away by investing in both Barings Active and Franklin India 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 Barings Active and Franklin India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Franklin India Growth, you can compare the effects of market volatilities on Barings Active and Franklin India 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 Barings Active with a short position of Franklin India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Franklin India.
Diversification Opportunities for Barings Active and Franklin India
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Franklin India Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin India Growth and Barings Active 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 Barings Active Short are associated (or correlated) with Franklin India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin India Growth has no effect on the direction of Barings Active i.e., Barings Active and Franklin India go up and down completely randomly.
Pair Corralation between Barings Active and Franklin India
If you would invest 886.00 in Barings Active Short on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Barings Active Short or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barings Active Short vs. Franklin India Growth
Performance |
| Timeline |
| Barings Active Short |
| Franklin India Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Active and Franklin India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Franklin India
The main advantage of trading using opposite Barings Active and Franklin India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Franklin India 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 India will offset losses from the drop in Franklin India's long position.| Barings Active vs. Barings Active Short | Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Global Floating |
| Franklin India vs. Nuveen Arizona Municipal | Franklin India vs. Ishares Municipal Bond | Franklin India vs. The National Tax Free | Franklin India vs. Transamerica Funds |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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