Correlation Between Franklin Adjustable and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Artisan Value 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 Adjustable and Artisan Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Artisan Value Fund, you can compare the effects of market volatilities on Franklin Adjustable and Artisan Value 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 Adjustable with a short position of Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Artisan Value.
Diversification Opportunities for Franklin Adjustable and Artisan Value
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Artisan is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value and Franklin Adjustable 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 Adjustable Government are associated (or correlated) with Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Artisan Value go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Artisan Value
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.24 times more return on investment than Artisan Value. However, Franklin Adjustable Government is 4.18 times less risky than Artisan Value. It trades about 0.31 of its potential returns per unit of risk. Artisan Value Fund is currently generating about -0.03 per unit of risk. If you would invest 751.00 in Franklin Adjustable Government on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Franklin Adjustable Government or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Artisan Value Fund
Performance |
| Timeline |
| Franklin Adjustable |
| Artisan Value |
Franklin Adjustable and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Artisan Value
The main advantage of trading using opposite Franklin Adjustable and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Artisan Value 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 Artisan Value will offset losses from the drop in Artisan Value's long position.| Franklin Adjustable vs. Global Gold Fund | Franklin Adjustable vs. Invesco Gold Special | Franklin Adjustable vs. The Gold Bullion | Franklin Adjustable vs. Global Gold Fund |
| Artisan Value vs. Nexpoint Real Estate | Artisan Value vs. Nomura Real Estate | Artisan Value vs. Prudential Real Estate | Artisan Value vs. Global Real Estate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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