Correlation Between EcoSynthetix and Franklin Global
Can any of the company-specific risk be diversified away by investing in both EcoSynthetix and Franklin Global 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 EcoSynthetix and Franklin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EcoSynthetix and Franklin Global Aggregate, you can compare the effects of market volatilities on EcoSynthetix and Franklin Global 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 EcoSynthetix with a short position of Franklin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of EcoSynthetix and Franklin Global.
Diversification Opportunities for EcoSynthetix and Franklin Global
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EcoSynthetix and Franklin is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding EcoSynthetix and Franklin Global Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Global Aggregate and EcoSynthetix 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 EcoSynthetix are associated (or correlated) with Franklin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Global Aggregate has no effect on the direction of EcoSynthetix i.e., EcoSynthetix and Franklin Global go up and down completely randomly.
Pair Corralation between EcoSynthetix and Franklin Global
Assuming the 90 days trading horizon EcoSynthetix is expected to under-perform the Franklin Global. In addition to that, EcoSynthetix is 8.84 times more volatile than Franklin Global Aggregate. It trades about -0.12 of its total potential returns per unit of risk. Franklin Global Aggregate is currently generating about 0.12 per unit of volatility. If you would invest 1,894 in Franklin Global Aggregate on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Franklin Global Aggregate or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EcoSynthetix vs. Franklin Global Aggregate
Performance |
| Timeline |
| EcoSynthetix |
| Franklin Global Aggregate |
EcoSynthetix and Franklin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EcoSynthetix and Franklin Global
The main advantage of trading using opposite EcoSynthetix and Franklin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EcoSynthetix position performs unexpectedly, Franklin Global 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 Global will offset losses from the drop in Franklin Global's long position.| EcoSynthetix vs. DIRTT Environmental Solutions | EcoSynthetix vs. 5N Plus | EcoSynthetix vs. Colabor Group | EcoSynthetix vs. TeraGo Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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