Correlation Between FLIY and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both FLIY 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 FLIY and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLIY and Franklin FTSE Mexico, you can compare the effects of market volatilities on FLIY 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 FLIY with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLIY and Franklin FTSE.
Diversification Opportunities for FLIY and Franklin FTSE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FLIY and Franklin is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding FLIY 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 FLIY 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 FLIY 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 FLIY i.e., FLIY and Franklin FTSE go up and down completely randomly.
Pair Corralation between FLIY and Franklin FTSE
If you would invest 2,746 in FLIY on September 12, 2024 and sell it today you would earn a total of 0.00 from holding FLIY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
FLIY vs. Franklin FTSE Mexico
Performance |
| Timeline |
| FLIY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin FTSE Mexico |
FLIY and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLIY and Franklin FTSE
The main advantage of trading using opposite FLIY and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLIY 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.| FLIY vs. Franklin FTSE Germany | FLIY vs. Franklin FTSE Australia | FLIY vs. Franklin FTSE United | FLIY vs. Franklin FTSE Mexico |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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