Correlation Between Ftfa Franklin and Smi Servative
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Smi Servative 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 Smi Servative 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 Smi Servative Allocation, you can compare the effects of market volatilities on Ftfa Franklin and Smi Servative 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 Smi Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Smi Servative.
Diversification Opportunities for Ftfa Franklin and Smi Servative
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Smi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Smi Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smi Servative Allocation 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 Smi Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smi Servative Allocation has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Smi Servative go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Smi Servative
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.86 times more return on investment than Smi Servative. However, Ftfa Franklin Templeton Growth is 1.17 times less risky than Smi Servative. It trades about 0.17 of its potential returns per unit of risk. Smi Servative Allocation is currently generating about 0.1 per unit of risk. If you would invest 2,103 in Ftfa Franklin Templeton Growth on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Ftfa Franklin Templeton Growth or generate 1.38% 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. Smi Servative Allocation
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Smi Servative Allocation |
Ftfa Franklin and Smi Servative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Smi Servative
The main advantage of trading using opposite Ftfa Franklin and Smi Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Smi Servative 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 Smi Servative will offset losses from the drop in Smi Servative'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 |
| Smi Servative vs. Qs Moderate Growth | Smi Servative vs. Jp Morgan Smartretirement | Smi Servative vs. Deutsche Multi Asset Moderate | Smi Servative vs. Pro Blend Moderate Term |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |