Correlation Between Franklin Adjustable and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Franklin Adjustable and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Simt Multi-asset.
Diversification Opportunities for Franklin Adjustable and Simt Multi-asset
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Simt is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Simt Multi-asset
Assuming the 90 days horizon Franklin Adjustable is expected to generate 1.39 times less return on investment than Simt Multi-asset. But when comparing it to its historical volatility, Franklin Adjustable Government is 2.0 times less risky than Simt Multi-asset. It trades about 0.15 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 739.00 in Simt Multi Asset Inflation on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Simt Multi Asset Inflation or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Franklin Adjustable |
| Simt Multi Asset |
Franklin Adjustable and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Simt Multi-asset
The main advantage of trading using opposite Franklin Adjustable and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Franklin Adjustable vs. Vanguard Growth And | Franklin Adjustable vs. Tfa Alphagen Growth | Franklin Adjustable vs. Growth Portfolio Class | Franklin Adjustable vs. Pace Large Growth |
| Simt Multi-asset vs. Great West Goldman Sachs | Simt Multi-asset vs. Deutsche Gold Precious | Simt Multi-asset vs. Great West Goldman Sachs | Simt Multi-asset vs. International Investors Gold |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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