Correlation Between Franklin Adjustable and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Calvert Global 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 Calvert Global 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 Calvert Global Energy, you can compare the effects of market volatilities on Franklin Adjustable and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Calvert Global.
Diversification Opportunities for Franklin Adjustable and Calvert Global
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FRANKLIN and Calvert is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Calvert Global go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Calvert Global
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.08 times more return on investment than Calvert Global. However, Franklin Adjustable Government is 12.91 times less risky than Calvert Global. It trades about -0.08 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.02 per unit of risk. If you would invest 755.00 in Franklin Adjustable Government on September 1, 2024 and sell it today you would lose (1.00) from holding Franklin Adjustable Government or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Calvert Global Energy
Performance |
| Timeline |
| Franklin Adjustable |
| Calvert Global Energy |
Franklin Adjustable and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Calvert Global
The main advantage of trading using opposite Franklin Adjustable and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Franklin Adjustable vs. Virtus Seix Government | Franklin Adjustable vs. Dws Government Money | Franklin Adjustable vs. Dunham Porategovernment Bond | Franklin Adjustable vs. Ab Government Exchange |
| Calvert Global vs. Franklin Government Money | Calvert Global vs. Dws Government Money | Calvert Global vs. Dunham Porategovernment Bond | Calvert Global vs. Franklin Adjustable Government |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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