Correlation Between Franklin Small and Aperture Discover
Can any of the company-specific risk be diversified away by investing in both Franklin Small and Aperture Discover 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 Small and Aperture Discover into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Small Cap and Aperture Discover Equity, you can compare the effects of market volatilities on Franklin Small and Aperture Discover 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 Small with a short position of Aperture Discover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and Aperture Discover.
Diversification Opportunities for Franklin Small and Aperture Discover
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Aperture is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Cap and Aperture Discover Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture Discover Equity and Franklin Small 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 Small Cap are associated (or correlated) with Aperture Discover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture Discover Equity has no effect on the direction of Franklin Small i.e., Franklin Small and Aperture Discover go up and down completely randomly.
Pair Corralation between Franklin Small and Aperture Discover
If you would invest 1,584 in Franklin Small Cap on November 3, 2024 and sell it today you would earn a total of 96.00 from holding Franklin Small Cap or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin Small Cap vs. Aperture Discover Equity
Performance |
| Timeline |
| Franklin Small Cap |
| Aperture Discover Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Small and Aperture Discover Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Small and Aperture Discover
The main advantage of trading using opposite Franklin Small and Aperture Discover positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, Aperture Discover 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 Aperture Discover will offset losses from the drop in Aperture Discover's long position.| Franklin Small vs. Fidelity Advisor Technology | Franklin Small vs. Vanguard Information Technology | Franklin Small vs. Red Oak Technology | Franklin Small vs. Columbia Global Technology |
| Aperture Discover vs. Fidelity Sai Convertible | Aperture Discover vs. Lord Abbett Convertible | Aperture Discover vs. Calamos Dynamic Convertible | Aperture Discover vs. Putnam Convertible Securities |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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