Correlation Between Franklin Adjustable and Europe 125x
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Europe 125x 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 Adjustable and Europe 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Europe 125x Strategy, you can compare the effects of market volatilities on Franklin Adjustable and Europe 125x 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 Adjustable with a short position of Europe 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Europe 125x.
Diversification Opportunities for Franklin Adjustable and Europe 125x
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Europe is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Europe 125x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europe 125x Strategy and Franklin Adjustable 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 Adjustable Government are associated (or correlated) with Europe 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europe 125x Strategy has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Europe 125x go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Europe 125x
Assuming the 90 days horizon Franklin Adjustable is expected to generate 2.26 times less return on investment than Europe 125x. But when comparing it to its historical volatility, Franklin Adjustable Government is 8.85 times less risky than Europe 125x. It trades about 0.14 of its potential returns per unit of risk. Europe 125x Strategy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,219 in Europe 125x Strategy on November 9, 2024 and sell it today you would earn a total of 1,204 from holding Europe 125x Strategy or generate 16.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Europe 125x Strategy
Performance |
| Timeline |
| Franklin Adjustable |
| Europe 125x Strategy |
Franklin Adjustable and Europe 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Europe 125x
The main advantage of trading using opposite Franklin Adjustable and Europe 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Europe 125x 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 Europe 125x will offset losses from the drop in Europe 125x's long position.| Franklin Adjustable vs. Ab Global Bond | Franklin Adjustable vs. Goldman Sachs Short | Franklin Adjustable vs. Blrc Sgy Mnp | Franklin Adjustable vs. Siit High Yield |
| Europe 125x vs. Hewitt Money Market | Europe 125x vs. Financials Ultrasector Profund | Europe 125x vs. John Hancock Money | Europe 125x vs. Edward Jones Money |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |