Correlation Between Franklin Convertible and 25160PAE7
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By analyzing existing cross correlation between Franklin Vertible Securities and DEUTSCHE BK AG, you can compare the effects of market volatilities on Franklin Convertible and 25160PAE7 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 Convertible with a short position of 25160PAE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Convertible and 25160PAE7.
Diversification Opportunities for Franklin Convertible and 25160PAE7
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and 25160PAE7 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and DEUTSCHE BK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BK AG and Franklin Convertible 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 Vertible Securities are associated (or correlated) with 25160PAE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE BK AG has no effect on the direction of Franklin Convertible i.e., Franklin Convertible and 25160PAE7 go up and down completely randomly.
Pair Corralation between Franklin Convertible and 25160PAE7
Assuming the 90 days horizon Franklin Vertible Securities is expected to generate 1.34 times more return on investment than 25160PAE7. However, Franklin Convertible is 1.34 times more volatile than DEUTSCHE BK AG. It trades about -0.44 of its potential returns per unit of risk. DEUTSCHE BK AG is currently generating about -0.6 per unit of risk. If you would invest 2,455 in Franklin Vertible Securities on October 15, 2024 and sell it today you would lose (145.00) from holding Franklin Vertible Securities or give up 5.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 50.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. DEUTSCHE BK AG
Performance |
| Timeline |
| Franklin Convertible |
| DEUTSCHE BK AG |
Franklin Convertible and 25160PAE7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Convertible and 25160PAE7
The main advantage of trading using opposite Franklin Convertible and 25160PAE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Convertible position performs unexpectedly, 25160PAE7 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 25160PAE7 will offset losses from the drop in 25160PAE7's long position.The idea behind Franklin Vertible Securities and DEUTSCHE BK AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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