Correlation Between Franklin Adjustable and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Hussman Strategic 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 Hussman Strategic 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 Hussman Strategic Dividend, you can compare the effects of market volatilities on Franklin Adjustable and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Hussman Strategic.
Diversification Opportunities for Franklin Adjustable and Hussman Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Hussman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Hussman Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Hussman Strategic go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Hussman Strategic
If you would invest 957.00 in Hussman Strategic Dividend on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Hussman Strategic Dividend or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Hussman Strategic Dividend
Performance |
| Timeline |
| Franklin Adjustable |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Hussman Strategic |
Franklin Adjustable and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Hussman Strategic
The main advantage of trading using opposite Franklin Adjustable and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Franklin Adjustable vs. Franklin Small Cap | Franklin Adjustable vs. Sp Smallcap 600 | Franklin Adjustable vs. Needham Small Cap | Franklin Adjustable vs. Touchstone Small Cap |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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