Correlation Between Franklin Liberty and Natixis Investment
Can any of the company-specific risk be diversified away by investing in both Franklin Liberty and Natixis Investment 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 Liberty and Natixis Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Liberty Investment and Natixis Investment Managers, you can compare the effects of market volatilities on Franklin Liberty and Natixis Investment 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 Liberty with a short position of Natixis Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Liberty and Natixis Investment.
Diversification Opportunities for Franklin Liberty and Natixis Investment
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Natixis is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Liberty Investment and Natixis Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Investment and Franklin Liberty 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 Liberty Investment are associated (or correlated) with Natixis Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Investment has no effect on the direction of Franklin Liberty i.e., Franklin Liberty and Natixis Investment go up and down completely randomly.
Pair Corralation between Franklin Liberty and Natixis Investment
If you would invest 2,143 in Franklin Liberty Investment on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Franklin Liberty Investment or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Franklin Liberty Investment vs. Natixis Investment Managers
Performance |
| Timeline |
| Franklin Liberty Inv |
| Natixis Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Franklin Liberty and Natixis Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Liberty and Natixis Investment
The main advantage of trading using opposite Franklin Liberty and Natixis Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Liberty position performs unexpectedly, Natixis Investment 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 Natixis Investment will offset losses from the drop in Natixis Investment's long position.| Franklin Liberty vs. Franklin Liberty Short | Franklin Liberty vs. Goldman Sachs Access | Franklin Liberty vs. Franklin Templeton ETF | Franklin Liberty vs. Franklin Liberty Federal |
| Natixis Investment vs. VictoryShares USAA Core | Natixis Investment vs. American Century Diversified | Natixis Investment vs. IQ MacKay Municipal | Natixis Investment vs. IQ MacKay Municipal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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