Correlation Between Ftfa Franklin and Clearbridge Energy
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Clearbridge Energy 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 Clearbridge Energy 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 Clearbridge Energy Mlp, you can compare the effects of market volatilities on Ftfa Franklin and Clearbridge Energy 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 Clearbridge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Clearbridge Energy.
Diversification Opportunities for Ftfa Franklin and Clearbridge Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ftfa and Clearbridge is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Clearbridge Energy Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Energy Mlp 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 Clearbridge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Energy Mlp has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Clearbridge Energy go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Clearbridge Energy
Assuming the 90 days horizon Ftfa Franklin is expected to generate 2.51 times less return on investment than Clearbridge Energy. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 3.31 times less risky than Clearbridge Energy. It trades about 0.11 of its potential returns per unit of risk. Clearbridge Energy Mlp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,139 in Clearbridge Energy Mlp on September 14, 2024 and sell it today you would earn a total of 116.00 from holding Clearbridge Energy Mlp or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Clearbridge Energy Mlp
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Clearbridge Energy Mlp |
Ftfa Franklin and Clearbridge Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Clearbridge Energy
The main advantage of trading using opposite Ftfa Franklin and Clearbridge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Clearbridge Energy 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 Clearbridge Energy will offset losses from the drop in Clearbridge Energy'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 |
| Clearbridge Energy vs. Vanguard Total Stock | Clearbridge Energy vs. Vanguard 500 Index | Clearbridge Energy vs. Vanguard Total Stock | Clearbridge Energy vs. Vanguard Total Stock |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |