Correlation Between Falcon Focus and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Franklin Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Franklin Lifesmart 2050, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Franklin Lifesmart.
Diversification Opportunities for Falcon Focus and Franklin Lifesmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv 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 Falcon Focus 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 Falcon Focus Scv 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 Falcon Focus i.e., Falcon Focus and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Falcon Focus and Franklin Lifesmart
If you would invest 1,530 in Franklin Lifesmart 2050 on September 2, 2024 and sell it today you would earn a total of 70.00 from holding Franklin Lifesmart 2050 or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Franklin Lifesmart 2050
Performance |
| Timeline |
| Falcon Focus Scv |
| Franklin Lifesmart 2050 |
Falcon Focus and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Franklin Lifesmart
The main advantage of trading using opposite Falcon Focus and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. Rbc Funds Trust | Falcon Focus vs. Rbb Fund | Falcon Focus vs. Qs Growth Fund | Falcon Focus vs. T Rowe Price |
| Franklin Lifesmart vs. Franklin Mutual Beacon | Franklin Lifesmart vs. Templeton Developing Markets | Franklin Lifesmart vs. Franklin Mutual Global | Franklin Lifesmart vs. Franklin Mutual Global |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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