Correlation Between Ftfa Franklin and Asia Opportunity
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Asia Opportunity 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 Asia Opportunity 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 Asia Opportunity Portfolio, you can compare the effects of market volatilities on Ftfa Franklin and Asia Opportunity 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 Asia Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Asia Opportunity.
Diversification Opportunities for Ftfa Franklin and Asia Opportunity
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ftfa and Asia is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Asia Opportunity Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Opportunity Por 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 Asia Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Opportunity Por has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Asia Opportunity go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Asia Opportunity
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.51 times more return on investment than Asia Opportunity. However, Ftfa Franklin Templeton Growth is 1.95 times less risky than Asia Opportunity. It trades about 0.09 of its potential returns per unit of risk. Asia Opportunity Portfolio is currently generating about 0.02 per unit of risk. If you would invest 1,599 in Ftfa Franklin Templeton Growth on September 3, 2024 and sell it today you would earn a total of 522.00 from holding Ftfa Franklin Templeton Growth or generate 32.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Asia Opportunity Portfolio
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Asia Opportunity Por |
Ftfa Franklin and Asia Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Asia Opportunity
The main advantage of trading using opposite Ftfa Franklin and Asia Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Asia Opportunity 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 Asia Opportunity will offset losses from the drop in Asia Opportunity's long position.| Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of |
| Asia Opportunity vs. Tfa Alphagen Growth | Asia Opportunity vs. Ftfa Franklin Templeton Growth | Asia Opportunity vs. Goldman Sachs Growth | Asia Opportunity vs. Eip Growth And |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |