Correlation Between Franklin Founding and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Franklin Founding and Eagle Mlp 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 Founding and Eagle Mlp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Founding Funds and Eagle Mlp Strategy, you can compare the effects of market volatilities on Franklin Founding and Eagle Mlp 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 Founding with a short position of Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Founding and Eagle Mlp.
Diversification Opportunities for Franklin Founding and Eagle Mlp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Eagle is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Founding Funds and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy and Franklin Founding 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 Founding Funds are associated (or correlated) with Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Franklin Founding i.e., Franklin Founding and Eagle Mlp go up and down completely randomly.
Pair Corralation between Franklin Founding and Eagle Mlp
Assuming the 90 days horizon Franklin Founding Funds is expected to under-perform the Eagle Mlp. But the mutual fund apears to be less risky and, when comparing its historical volatility, Franklin Founding Funds is 1.87 times less risky than Eagle Mlp. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Eagle Mlp Strategy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Eagle Mlp Strategy on December 25, 2024 and sell it today you would earn a total of 39.00 from holding Eagle Mlp Strategy or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Founding Funds vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Franklin Founding Funds |
| Eagle Mlp Strategy |
Franklin Founding and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Founding and Eagle Mlp
The main advantage of trading using opposite Franklin Founding and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Founding position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp's long position.| Franklin Founding vs. Amg River Road | Franklin Founding vs. Allianzgi International Small Cap | Franklin Founding vs. Inverse Mid Cap Strategy | Franklin Founding vs. Boston Partners Small |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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