Correlation Between Franklin Convertible and Volumetric Fund
Can any of the company-specific risk be diversified away by investing in both Franklin Convertible and Volumetric Fund 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 Convertible and Volumetric Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Vertible Securities and Volumetric Fund Volumetric, you can compare the effects of market volatilities on Franklin Convertible and Volumetric Fund 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 Volumetric Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Convertible and Volumetric Fund.
Diversification Opportunities for Franklin Convertible and Volumetric Fund
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Volumetric is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and Volumetric Fund Volumetric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volumetric Fund Volu 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 Volumetric Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volumetric Fund Volu has no effect on the direction of Franklin Convertible i.e., Franklin Convertible and Volumetric Fund go up and down completely randomly.
Pair Corralation between Franklin Convertible and Volumetric Fund
Assuming the 90 days horizon Franklin Vertible Securities is expected to generate 0.65 times more return on investment than Volumetric Fund. However, Franklin Vertible Securities is 1.55 times less risky than Volumetric Fund. It trades about 0.08 of its potential returns per unit of risk. Volumetric Fund Volumetric is currently generating about 0.04 per unit of risk. If you would invest 1,964 in Franklin Vertible Securities on October 16, 2024 and sell it today you would earn a total of 349.00 from holding Franklin Vertible Securities or generate 17.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Volumetric Fund Volumetric
Performance |
| Timeline |
| Franklin Convertible |
| Volumetric Fund Volu |
Franklin Convertible and Volumetric Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Convertible and Volumetric Fund
The main advantage of trading using opposite Franklin Convertible and Volumetric Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Convertible position performs unexpectedly, Volumetric Fund 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 Volumetric Fund will offset losses from the drop in Volumetric Fund's long position.| Franklin Convertible vs. Doubleline Core Fixed | Franklin Convertible vs. Calvert International Equity | Franklin Convertible vs. Dws Equity Sector | Franklin Convertible vs. Smallcap World Fund |
| Volumetric Fund vs. Putnam Vertible Securities | Volumetric Fund vs. Franklin Vertible Securities | Volumetric Fund vs. Calamos Vertible Fund | Volumetric Fund vs. Absolute Convertible Arbitrage |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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