Correlation Between Delaware Extended and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Delaware Extended and Franklin Lifesmart 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 Delaware Extended and Franklin Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Extended Duration and Franklin Lifesmart 2050, you can compare the effects of market volatilities on Delaware Extended and Franklin Lifesmart 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 Delaware Extended with a short position of Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Extended and Franklin Lifesmart.
Diversification Opportunities for Delaware Extended and Franklin Lifesmart
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delaware and FRANKLIN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Extended Duration and Franklin Lifesmart 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart 2050 and Delaware Extended 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 Delaware Extended Duration are associated (or correlated) with Franklin Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart 2050 has no effect on the direction of Delaware Extended i.e., Delaware Extended and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Delaware Extended and Franklin Lifesmart
Assuming the 90 days horizon Delaware Extended Duration is expected to under-perform the Franklin Lifesmart. In addition to that, Delaware Extended is 1.0 times more volatile than Franklin Lifesmart 2050. It trades about -0.01 of its total potential returns per unit of risk. Franklin Lifesmart 2050 is currently generating about 0.13 per unit of volatility. If you would invest 1,529 in Franklin Lifesmart 2050 on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Franklin Lifesmart 2050 or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Extended Duration vs. Franklin Lifesmart 2050
Performance |
| Timeline |
| Delaware Extended |
| Franklin Lifesmart 2050 |
Delaware Extended and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Extended and Franklin Lifesmart
The main advantage of trading using opposite Delaware Extended and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Extended position performs unexpectedly, Franklin Lifesmart 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 Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.| Delaware Extended vs. Franklin Lifesmart 2050 | Delaware Extended vs. Jp Morgan Smartretirement | Delaware Extended vs. T Rowe Price | Delaware Extended vs. T Rowe Price |
| Franklin Lifesmart vs. Vanguard Target Retirement | Franklin Lifesmart vs. American Funds 2050 | Franklin Lifesmart vs. American Funds 2050 | Franklin Lifesmart vs. American Funds 2050 |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |