Correlation Between Franklin Adjustable and Aig Government
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Aig Government 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 Aig Government 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 Aig Government Money, you can compare the effects of market volatilities on Franklin Adjustable and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Aig Government.
Diversification Opportunities for Franklin Adjustable and Aig Government
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Aig is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Aig Government go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Aig Government
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.62 times more return on investment than Aig Government. However, Franklin Adjustable Government is 1.62 times less risky than Aig Government. It trades about 0.14 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.05 per unit of risk. If you would invest 696.00 in Franklin Adjustable Government on November 9, 2024 and sell it today you would earn a total of 58.00 from holding Franklin Adjustable Government or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Aig Government Money
Performance |
| Timeline |
| Franklin Adjustable |
| Aig Government Money |
Franklin Adjustable and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Aig Government
The main advantage of trading using opposite Franklin Adjustable and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government'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 |
| Aig Government vs. Elfun Government Money | Aig Government vs. Jpmorgan Government Bond | Aig Government vs. Dws Government Money | Aig Government vs. John Hancock Government |
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 Stocks Directory module to find actively traded stocks across global markets.
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