Correlation Between Franklin Adjustable and Boston Mon
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Boston Mon 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 Boston Mon 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 Boston Mon Equity, you can compare the effects of market volatilities on Franklin Adjustable and Boston Mon 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 Boston Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Boston Mon.
Diversification Opportunities for Franklin Adjustable and Boston Mon
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Boston is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Boston Mon Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Mon Equity 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 Boston Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Mon Equity has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Boston Mon go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Boston Mon
Assuming the 90 days horizon Franklin Adjustable Government is not expected to generate positive returns. However, Franklin Adjustable Government is 24.36 times less risky than Boston Mon. It waists most of its returns potential to compensate for thr risk taken. Boston Mon is generating about -0.13 per unit of risk. If you would invest 754.00 in Franklin Adjustable Government on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Adjustable Government or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Boston Mon Equity
Performance |
| Timeline |
| Franklin Adjustable |
| Boston Mon Equity |
Franklin Adjustable and Boston Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Boston Mon
The main advantage of trading using opposite Franklin Adjustable and Boston Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Boston Mon 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 Boston Mon will offset losses from the drop in Boston Mon's long position.| Franklin Adjustable vs. Franklin Mutual Beacon | Franklin Adjustable vs. Templeton Developing Markets | Franklin Adjustable vs. Franklin Mutual Global | Franklin Adjustable vs. Franklin Mutual Global |
| Boston Mon vs. Boston Mon International | Boston Mon vs. Boston Common Esg | Boston Mon vs. Environment And Alternative | Boston Mon vs. New Economy Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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