Correlation Between Franklin International and Jhancock Real
Can any of the company-specific risk be diversified away by investing in both Franklin International and Jhancock Real 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 International and Jhancock Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin International Small and Jhancock Real Estate, you can compare the effects of market volatilities on Franklin International and Jhancock Real 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 International with a short position of Jhancock Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin International and Jhancock Real.
Diversification Opportunities for Franklin International and Jhancock Real
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Jhancock is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin International Small and Jhancock Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Real Estate and Franklin International 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 International Small are associated (or correlated) with Jhancock Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Real Estate has no effect on the direction of Franklin International i.e., Franklin International and Jhancock Real go up and down completely randomly.
Pair Corralation between Franklin International and Jhancock Real
If you would invest 1,355 in Franklin International Small on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Franklin International Small or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin International Small vs. Jhancock Real Estate
Performance |
| Timeline |
| Franklin International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jhancock Real Estate |
Franklin International and Jhancock Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin International and Jhancock Real
The main advantage of trading using opposite Franklin International and Jhancock Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin International position performs unexpectedly, Jhancock Real 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 Jhancock Real will offset losses from the drop in Jhancock Real's long position.| Franklin International vs. Global Gold Fund | Franklin International vs. Goldman Sachs Clean | Franklin International vs. Europac Gold Fund | Franklin International vs. Invesco Gold Special |
| Jhancock Real vs. Virtus Seix Government | Jhancock Real vs. Us Government Securities | Jhancock Real vs. Hsbc Government Money | Jhancock Real vs. Wesmark Government Bond |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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