Correlation Between Franklin FTSE and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and Franklin FTSE 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 Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Europe and Franklin FTSE Asia, you can compare the effects of market volatilities on Franklin FTSE and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and Franklin FTSE.
Diversification Opportunities for Franklin FTSE and Franklin FTSE
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Franklin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Europe and Franklin FTSE Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Asia 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 Europe are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Asia has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and Franklin FTSE go up and down completely randomly.
Pair Corralation between Franklin FTSE and Franklin FTSE
Given the investment horizon of 90 days Franklin FTSE Europe is expected to under-perform the Franklin FTSE. But the etf apears to be less risky and, when comparing its historical volatility, Franklin FTSE Europe is 1.6 times less risky than Franklin FTSE. The etf trades about -0.09 of its potential returns per unit of risk. The Franklin FTSE Asia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,266 in Franklin FTSE Asia on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Franklin FTSE Asia or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin FTSE Europe vs. Franklin FTSE Asia
Performance |
| Timeline |
| Franklin FTSE Europe |
| Franklin FTSE Asia |
Franklin FTSE and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and Franklin FTSE
The main advantage of trading using opposite Franklin FTSE and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.| Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. SPDR Portfolio Europe | Franklin FTSE vs. Franklin FTSE Germany | Franklin FTSE vs. Franklin FTSE Japan |
| Franklin FTSE vs. Franklin FTSE Australia | Franklin FTSE vs. Franklin FTSE Japan | Franklin FTSE vs. Franklin FTSE Japan | Franklin FTSE vs. Franklin FTSE India |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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