Correlation Between Dunham Appreciation and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Dunham Appreciation and Franklin Adjustable 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 Dunham Appreciation and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham Appreciation Income and Franklin Adjustable Government, you can compare the effects of market volatilities on Dunham Appreciation and Franklin Adjustable 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 Dunham Appreciation with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham Appreciation and Franklin Adjustable.
Diversification Opportunities for Dunham Appreciation and Franklin Adjustable
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dunham and Franklin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dunham Appreciation Income and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Dunham Appreciation 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 Dunham Appreciation Income are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Dunham Appreciation i.e., Dunham Appreciation and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Dunham Appreciation and Franklin Adjustable
If you would invest 722.00 in Franklin Adjustable Government on November 3, 2024 and sell it today you would earn a total of 31.00 from holding Franklin Adjustable Government or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.4% |
| Values | Daily Returns |
Dunham Appreciation Income vs. Franklin Adjustable Government
Performance |
| Timeline |
| Dunham Appreciation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Franklin Adjustable |
Dunham Appreciation and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham Appreciation and Franklin Adjustable
The main advantage of trading using opposite Dunham Appreciation and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham Appreciation position performs unexpectedly, Franklin Adjustable 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 Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Dunham Appreciation vs. Franklin Small Cap | Dunham Appreciation vs. Tax Managed Mid Small | Dunham Appreciation vs. Small Pany Growth | Dunham Appreciation vs. Needham Small Cap |
| Franklin Adjustable vs. Vanguard Growth And | Franklin Adjustable vs. Tfa Alphagen Growth | Franklin Adjustable vs. Growth Portfolio Class | Franklin Adjustable vs. Pace Large Growth |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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