Correlation Between Ftfa Franklin and Guidemark(r) Core
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Guidemark(r) Core 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 Guidemark(r) Core 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 Guidemark E Fixed, you can compare the effects of market volatilities on Ftfa Franklin and Guidemark(r) Core 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 Guidemark(r) Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Guidemark(r) Core.
Diversification Opportunities for Ftfa Franklin and Guidemark(r) Core
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ftfa and Guidemark(r) is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Guidemark E Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark E Fixed 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 Guidemark(r) Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark E Fixed has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Guidemark(r) Core go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Guidemark(r) Core
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 1.76 times more return on investment than Guidemark(r) Core. However, Ftfa Franklin is 1.76 times more volatile than Guidemark E Fixed. It trades about 0.14 of its potential returns per unit of risk. Guidemark E Fixed is currently generating about 0.07 per unit of risk. If you would invest 1,724 in Ftfa Franklin Templeton Growth on September 4, 2024 and sell it today you would earn a total of 402.00 from holding Ftfa Franklin Templeton Growth or generate 23.32% 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. Guidemark E Fixed
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Guidemark E Fixed |
Ftfa Franklin and Guidemark(r) Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Guidemark(r) Core
The main advantage of trading using opposite Ftfa Franklin and Guidemark(r) Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Guidemark(r) Core 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 Guidemark(r) Core will offset losses from the drop in Guidemark(r) Core'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 |
| Guidemark(r) Core vs. Ftfa Franklin Templeton Growth | Guidemark(r) Core vs. Small Pany Growth | Guidemark(r) Core vs. Chase Growth Fund | Guidemark(r) Core vs. T Rowe Price |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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