Correlation Between FLFR and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both FLFR 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 FLFR and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLFR and Franklin FTSE Mexico, you can compare the effects of market volatilities on FLFR 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 FLFR with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLFR and Franklin FTSE.
Diversification Opportunities for FLFR and Franklin FTSE
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FLFR and Franklin is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding FLFR and Franklin FTSE Mexico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Mexico and FLFR 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 FLFR 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 Mexico has no effect on the direction of FLFR i.e., FLFR and Franklin FTSE go up and down completely randomly.
Pair Corralation between FLFR and Franklin FTSE
If you would invest 3,189 in FLFR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding FLFR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
FLFR vs. Franklin FTSE Mexico
Performance |
| Timeline |
| FLFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin FTSE Mexico |
FLFR and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLFR and Franklin FTSE
The main advantage of trading using opposite FLFR and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLFR 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.| FLFR vs. HUMANA INC | FLFR vs. SCOR PK | FLFR vs. Aquagold International | FLFR vs. Ab Pennsylvania Portfolio |
| Franklin FTSE vs. HUMANA INC | Franklin FTSE vs. SCOR PK | Franklin FTSE vs. Aquagold International | Franklin FTSE 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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