Correlation Between Franklin Emerging and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Allianzgi Nfj 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 Emerging and Allianzgi Nfj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Emerging Market and Allianzgi Nfj International, you can compare the effects of market volatilities on Franklin Emerging and Allianzgi Nfj 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 Emerging with a short position of Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Allianzgi Nfj.
Diversification Opportunities for Franklin Emerging and Allianzgi Nfj
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Allianzgi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Allianzgi Nfj International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Intern and Franklin Emerging 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 Emerging Market are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Intern has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Franklin Emerging and Allianzgi Nfj
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 1.33 times more return on investment than Allianzgi Nfj. However, Franklin Emerging is 1.33 times more volatile than Allianzgi Nfj International. It trades about -0.29 of its potential returns per unit of risk. Allianzgi Nfj International is currently generating about -0.39 per unit of risk. If you would invest 1,227 in Franklin Emerging Market on October 9, 2024 and sell it today you would lose (66.00) from holding Franklin Emerging Market or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Allianzgi Nfj International
Performance |
| Timeline |
| Franklin Emerging Market |
| Allianzgi Nfj Intern |
Franklin Emerging and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Allianzgi Nfj
The main advantage of trading using opposite Franklin Emerging and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Franklin Emerging vs. Nuveen Short Term | Franklin Emerging vs. Aamhimco Short Duration | Franklin Emerging vs. Angel Oak Ultrashort | Franklin Emerging vs. Oakhurst Short Duration |
| Allianzgi Nfj vs. Allianzgi Nfj International | Allianzgi Nfj vs. Allianzgi Vertible Fund | Allianzgi Nfj vs. Allianzgi Nfj Mid Cap | Allianzgi Nfj vs. Allianzgi Focused Growth |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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