Correlation Between Ftfa Franklin and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Salient Tactical 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 Salient Tactical 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 Salient Tactical Growth, you can compare the effects of market volatilities on Ftfa Franklin and Salient Tactical 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 Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Salient Tactical.
Diversification Opportunities for Ftfa Franklin and Salient Tactical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Salient is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Salient Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Growth 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 Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Growth has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Salient Tactical go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Salient Tactical
Assuming the 90 days horizon Ftfa Franklin is expected to generate 1.02 times less return on investment than Salient Tactical. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.02 times less risky than Salient Tactical. It trades about 0.1 of its potential returns per unit of risk. Salient Tactical Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,542 in Salient Tactical Growth on September 14, 2024 and sell it today you would earn a total of 588.00 from holding Salient Tactical Growth or generate 38.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Salient Tactical Growth
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Salient Tactical Growth |
Ftfa Franklin and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Salient Tactical
The main advantage of trading using opposite Ftfa Franklin and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Salient Tactical 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 Salient Tactical will offset losses from the drop in Salient Tactical's long position.| Ftfa Franklin vs. Ashmore Emerging Markets | Ftfa Franklin vs. Rbc Emerging Markets | Ftfa Franklin vs. Shelton Emerging Markets | Ftfa Franklin vs. Investec Emerging Markets |
| Salient Tactical vs. Ftfa Franklin Templeton Growth | Salient Tactical vs. Smallcap Growth Fund | Salient Tactical vs. Franklin Growth Opportunities | Salient Tactical vs. Tfa Alphagen 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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