Correlation Between Franklin India and Franklin All
Can any of the company-specific risk be diversified away by investing in both Franklin India and Franklin All 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 Franklin India and Franklin All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin India Growth and Franklin All Cap, you can compare the effects of market volatilities on Franklin India and Franklin All 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 Franklin India with a short position of Franklin All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin India and Franklin All.
Diversification Opportunities for Franklin India and Franklin All
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin India Growth and Franklin All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin All Cap and Franklin India 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 Franklin India Growth are associated (or correlated) with Franklin All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin All Cap has no effect on the direction of Franklin India i.e., Franklin India and Franklin All go up and down completely randomly.
Pair Corralation between Franklin India and Franklin All
If you would invest (100.00) in Franklin All Cap on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Franklin All Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin India Growth vs. Franklin All Cap
Performance |
| Timeline |
| Franklin India Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin All Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin India and Franklin All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin India and Franklin All
The main advantage of trading using opposite Franklin India and Franklin All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin India position performs unexpectedly, Franklin All 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 Franklin All will offset losses from the drop in Franklin All's long position.| Franklin India vs. Dreyfus Institutional Reserves | Franklin India vs. Rbc Funds Trust | Franklin India vs. Aim Investment Secs | Franklin India vs. Chestnut Street Exchange |
| Franklin All vs. Aqr Long Short Equity | Franklin All vs. Legg Mason Partners | Franklin All vs. Pnc Emerging Markets | Franklin All vs. Ep Emerging Markets |
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 Stocks Directory module to find actively traded stocks across global markets.
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