Correlation Between DSJA and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both DSJA and Franklin Liberty 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 DSJA and Franklin Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and Franklin Liberty Ultra, you can compare the effects of market volatilities on DSJA and Franklin Liberty 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 DSJA with a short position of Franklin Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and Franklin Liberty.
Diversification Opportunities for DSJA and Franklin Liberty
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DSJA and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and Franklin Liberty Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Ultra and DSJA 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 DSJA are associated (or correlated) with Franklin Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Ultra has no effect on the direction of DSJA i.e., DSJA and Franklin Liberty go up and down completely randomly.
Pair Corralation between DSJA and Franklin Liberty
If you would invest 2,484 in Franklin Liberty Ultra on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Franklin Liberty Ultra or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
DSJA vs. Franklin Liberty Ultra
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Liberty Ultra |
DSJA and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and Franklin Liberty
The main advantage of trading using opposite DSJA and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, Franklin Liberty 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 Liberty will offset losses from the drop in Franklin Liberty's long position.| DSJA vs. FT Cboe Vest | DSJA vs. Aquagold International | DSJA vs. Morningstar Unconstrained Allocation | DSJA vs. High Yield Municipal Fund |
| Franklin Liberty vs. Valued Advisers Trust | Franklin Liberty vs. Columbia Diversified Fixed | Franklin Liberty vs. Principal Exchange Traded Funds | Franklin Liberty vs. Doubleline Etf Trust |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |