Correlation Between Franklin FTSE and FLIY
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and FLIY 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 FTSE and FLIY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Australia and FLIY, you can compare the effects of market volatilities on Franklin FTSE and FLIY 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 FTSE with a short position of FLIY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and FLIY.
Diversification Opportunities for Franklin FTSE and FLIY
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and FLIY is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Australia and FLIY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLIY and Franklin FTSE 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 FTSE Australia are associated (or correlated) with FLIY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLIY has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and FLIY go up and down completely randomly.
Pair Corralation between Franklin FTSE and FLIY
If you would invest 2,464 in Franklin FTSE Australia on September 1, 2024 and sell it today you would earn a total of 660.00 from holding Franklin FTSE Australia or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Franklin FTSE Australia vs. FLIY
Performance |
| Timeline |
| Franklin FTSE Australia |
| FLIY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin FTSE and FLIY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and FLIY
The main advantage of trading using opposite Franklin FTSE and FLIY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, FLIY 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 FLIY will offset losses from the drop in FLIY's long position.| Franklin FTSE vs. HUMANA INC | Franklin FTSE vs. SCOR PK | Franklin FTSE vs. Aquagold International | Franklin FTSE vs. Ab Pennsylvania Portfolio |
| FLIY vs. HUMANA INC | FLIY vs. SCOR PK | FLIY vs. Aquagold International | FLIY vs. Ab Pennsylvania Portfolio |
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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