Correlation Between Ftfa Franklin and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Bond 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 Ftfa Franklin and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Bond Fund Of, you can compare the effects of market volatilities on Ftfa Franklin and Bond 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 Ftfa Franklin with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Bond Fund.
Diversification Opportunities for Ftfa Franklin and Bond Fund
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ftfa and Bond is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Bond Fund go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Bond Fund
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 1.5 times more return on investment than Bond Fund. However, Ftfa Franklin is 1.5 times more volatile than Bond Fund Of. It trades about 0.09 of its potential returns per unit of risk. Bond Fund Of is currently generating about 0.03 per unit of risk. If you would invest 1,599 in Ftfa Franklin Templeton Growth on September 3, 2024 and sell it today you would earn a total of 522.00 from holding Ftfa Franklin Templeton Growth or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Bond Fund Of
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Bond Fund |
Ftfa Franklin and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Bond Fund
The main advantage of trading using opposite Ftfa Franklin and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Bond 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 Bond Fund will offset losses from the drop in Bond Fund's long position.| Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of |
| Bond Fund vs. Qs Growth Fund | Bond Fund vs. Tfa Alphagen Growth | Bond Fund vs. Champlain Mid Cap | Bond Fund vs. Ftfa Franklin Templeton 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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