Correlation Between Ftfa Franklin and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Allocation, you can compare the effects of market volatilities on Ftfa Franklin and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Hussman Strategic.
Diversification Opportunities for Ftfa Franklin and Hussman Strategic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ftfa and Hussman is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Hussman Strategic Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Hussman Strategic go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Hussman Strategic
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 1.5 times more return on investment than Hussman Strategic. However, Ftfa Franklin is 1.5 times more volatile than Hussman Strategic Allocation. It trades about 0.08 of its potential returns per unit of risk. Hussman Strategic Allocation is currently generating about 0.1 per unit of risk. If you would invest 2,098 in Ftfa Franklin Templeton Growth on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Ftfa Franklin Templeton Growth or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Hussman Strategic Allocation
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Hussman Strategic |
Ftfa Franklin and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Hussman Strategic
The main advantage of trading using opposite Ftfa Franklin and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Ftfa Franklin vs. Lord Abbett Small | Ftfa Franklin vs. Ab Discovery Value | Ftfa Franklin vs. Royce Opportunity Fund | Ftfa Franklin vs. Vanguard Small Cap Value |
| Hussman Strategic vs. Hussman Strategic Dividend | Hussman Strategic vs. Hussman Strategic Growth | Hussman Strategic vs. Hussman Strategic Total | Hussman Strategic vs. Us Small Cap |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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