Correlation Between Franklin Adjustable and Pender Real
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Pender Real 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 Pender Real 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 Pender Real Estate, you can compare the effects of market volatilities on Franklin Adjustable and Pender Real 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 Pender Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Pender Real.
Diversification Opportunities for Franklin Adjustable and Pender Real
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Pender is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Pender Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pender Real Estate 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 Pender Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pender Real Estate has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Pender Real go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Pender Real
Assuming the 90 days horizon Franklin Adjustable is expected to generate 1.9 times less return on investment than Pender Real. In addition to that, Franklin Adjustable is 1.96 times more volatile than Pender Real Estate. It trades about 0.14 of its total potential returns per unit of risk. Pender Real Estate is currently generating about 0.52 per unit of volatility. If you would invest 885.00 in Pender Real Estate on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Pender Real Estate or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.41% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Pender Real Estate
Performance |
| Timeline |
| Franklin Adjustable |
| Pender Real Estate |
Franklin Adjustable and Pender Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Pender Real
The main advantage of trading using opposite Franklin Adjustable and Pender Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Pender Real 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 Pender Real will offset losses from the drop in Pender Real's long position.| Franklin Adjustable vs. Eaton Vance Short | Franklin Adjustable vs. Vanguard Short Term Treasury | Franklin Adjustable vs. Vanguard Short Term Treasury | Franklin Adjustable vs. Vanguard Short Term Federal |
| Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard 500 Index | Pender Real vs. Vanguard Total Stock | Pender Real vs. Vanguard Total Stock |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |