Correlation Between Franklin Arizona and Aqr Large
Can any of the company-specific risk be diversified away by investing in both Franklin Arizona and Aqr Large 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 Franklin Arizona and Aqr Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Arizona Tax Free and Aqr Large Cap, you can compare the effects of market volatilities on Franklin Arizona and Aqr Large 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 Franklin Arizona with a short position of Aqr Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Arizona and Aqr Large.
Diversification Opportunities for Franklin Arizona and Aqr Large
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Arizona Tax Free and Aqr Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Large Cap and Franklin Arizona 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 Franklin Arizona Tax Free are associated (or correlated) with Aqr Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Large Cap has no effect on the direction of Franklin Arizona i.e., Franklin Arizona and Aqr Large go up and down completely randomly.
Pair Corralation between Franklin Arizona and Aqr Large
If you would invest 2,297 in Aqr Large Cap on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Aqr Large Cap or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Franklin Arizona Tax Free vs. Aqr Large Cap
Performance |
| Timeline |
| Franklin Arizona Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Aqr Large Cap |
Franklin Arizona and Aqr Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Arizona and Aqr Large
The main advantage of trading using opposite Franklin Arizona and Aqr Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Arizona position performs unexpectedly, Aqr Large 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 Aqr Large will offset losses from the drop in Aqr Large's long position.| Franklin Arizona vs. Rationalpier 88 Convertible | Franklin Arizona vs. Advent Claymore Convertible | Franklin Arizona vs. Fidelity Sai Convertible | Franklin Arizona vs. Absolute Convertible Arbitrage |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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