Correlation Between Franklin Dynatech and Leuthold E
Can any of the company-specific risk be diversified away by investing in both Franklin Dynatech and Leuthold E 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 Dynatech and Leuthold E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Dynatech Fund and Leuthold E Investment, you can compare the effects of market volatilities on Franklin Dynatech and Leuthold E 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 Dynatech with a short position of Leuthold E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Dynatech and Leuthold E.
Diversification Opportunities for Franklin Dynatech and Leuthold E
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Leuthold is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Dynatech Fund and Leuthold E Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold E Investment and Franklin Dynatech 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 Dynatech Fund are associated (or correlated) with Leuthold E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold E Investment has no effect on the direction of Franklin Dynatech i.e., Franklin Dynatech and Leuthold E go up and down completely randomly.
Pair Corralation between Franklin Dynatech and Leuthold E
Assuming the 90 days horizon Franklin Dynatech Fund is expected to generate 2.22 times more return on investment than Leuthold E. However, Franklin Dynatech is 2.22 times more volatile than Leuthold E Investment. It trades about 0.11 of its potential returns per unit of risk. Leuthold E Investment is currently generating about 0.06 per unit of risk. If you would invest 13,469 in Franklin Dynatech Fund on September 14, 2024 and sell it today you would earn a total of 5,823 from holding Franklin Dynatech Fund or generate 43.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Dynatech Fund vs. Leuthold E Investment
Performance |
| Timeline |
| Franklin Dynatech |
| Leuthold E Investment |
Franklin Dynatech and Leuthold E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Dynatech and Leuthold E
The main advantage of trading using opposite Franklin Dynatech and Leuthold E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Dynatech position performs unexpectedly, Leuthold E 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 Leuthold E will offset losses from the drop in Leuthold E's long position.| Franklin Dynatech vs. Mfs International Diversification | Franklin Dynatech vs. John Hancock Bond | Franklin Dynatech vs. Lord Abbett Bond | Franklin Dynatech vs. Prudential Total Return |
| Leuthold E vs. Hussman Strategic Growth | Leuthold E vs. Fpa Crescent Fund | Leuthold E vs. The Merger Fund | Leuthold E vs. Leuthold Select Industries |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |