Correlation Between Ftfa Franklin and Great West
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Great West 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 Great West 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 Great West Lifetime 2040, you can compare the effects of market volatilities on Ftfa Franklin and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Great West.
Diversification Opportunities for Ftfa Franklin and Great West
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ftfa and Great is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Great West Lifetime 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifetime 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifetime has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Great West go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Great West
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.93 times more return on investment than Great West. However, Ftfa Franklin Templeton Growth is 1.07 times less risky than Great West. It trades about 0.1 of its potential returns per unit of risk. Great West Lifetime 2040 is currently generating about 0.06 per unit of risk. If you would invest 1,545 in Ftfa Franklin Templeton Growth on September 12, 2024 and sell it today you would earn a total of 576.00 from holding Ftfa Franklin Templeton Growth or generate 37.28% 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. Great West Lifetime 2040
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Great West Lifetime |
Ftfa Franklin and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Great West
The main advantage of trading using opposite Ftfa Franklin and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of |
| Great West vs. Needham Aggressive Growth | Great West vs. Ftfa Franklin Templeton Growth | Great West vs. Chase Growth Fund | Great West vs. Mid Cap 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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