Correlation Between Ftfa Franklin and Ishares Russell
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Ishares Russell 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 Ishares Russell 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 Ishares Russell 3000, you can compare the effects of market volatilities on Ftfa Franklin and Ishares Russell 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 Ishares Russell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Ishares Russell.
Diversification Opportunities for Ftfa Franklin and Ishares Russell
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Ishares is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Ishares Russell 3000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Russell 3000 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 Ishares Russell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Russell 3000 has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Ishares Russell go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Ishares Russell
Assuming the 90 days horizon Ftfa Franklin is expected to generate 1.35 times less return on investment than Ishares Russell. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.28 times less risky than Ishares Russell. It trades about 0.14 of its potential returns per unit of risk. Ishares Russell 3000 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,154 in Ishares Russell 3000 on September 14, 2024 and sell it today you would earn a total of 1,089 from holding Ishares Russell 3000 or generate 34.53% 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. Ishares Russell 3000
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Ishares Russell 3000 |
Ftfa Franklin and Ishares Russell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Ishares Russell
The main advantage of trading using opposite Ftfa Franklin and Ishares Russell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Ishares Russell 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 Ishares Russell will offset losses from the drop in Ishares Russell'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 |
| Ishares Russell vs. Franklin Growth Opportunities | Ishares Russell vs. Vy Baron Growth | Ishares Russell vs. Pace Smallmedium Growth | Ishares Russell 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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