Correlation Between Ftfa Franklin and Eip Growth
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Eip Growth 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 Eip Growth 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 Eip Growth And, you can compare the effects of market volatilities on Ftfa Franklin and Eip Growth 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 Eip Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Eip Growth.
Diversification Opportunities for Ftfa Franklin and Eip Growth
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ftfa and Eip is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Eip Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eip Growth And 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 Eip Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eip Growth And has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Eip Growth go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Eip Growth
Assuming the 90 days horizon Ftfa Franklin is expected to generate 2.58 times less return on investment than Eip Growth. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.68 times less risky than Eip Growth. It trades about 0.34 of its potential returns per unit of risk. Eip Growth And is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 1,801 in Eip Growth And on September 4, 2024 and sell it today you would earn a total of 182.00 from holding Eip Growth And or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Eip Growth And
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Eip Growth And |
Ftfa Franklin and Eip Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Eip Growth
The main advantage of trading using opposite Ftfa Franklin and Eip Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Eip Growth 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 Eip Growth will offset losses from the drop in Eip Growth's long position.| Ftfa Franklin vs. Franklin Mutual Beacon | Ftfa Franklin vs. Templeton Developing Markets | Ftfa Franklin vs. Franklin Mutual Global | Ftfa Franklin vs. Franklin Mutual Global |
| Eip Growth vs. Eip Growth And | Eip Growth vs. Columbia Seligman Global | Eip Growth vs. Jpmorgan Large Cap | Eip Growth vs. Virtus Select Mlp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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