Correlation Between Franklin Lifesmart and Franklin
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart and Franklin 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 Lifesmart and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Lifesmart Retirement and Franklin Government Money, you can compare the effects of market volatilities on Franklin Lifesmart and Franklin 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 Lifesmart with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Franklin.
Diversification Opportunities for Franklin Lifesmart and Franklin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart Retirement and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Franklin Lifesmart 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 Lifesmart Retirement are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Franklin go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Franklin
If you would invest 1,052 in Franklin Lifesmart Retirement on October 21, 2024 and sell it today you would earn a total of 9.00 from holding Franklin Lifesmart Retirement or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Lifesmart Retirement vs. Franklin Government Money
Performance |
| Timeline |
| Franklin Lifesmart |
| Franklin Government Money |
Franklin Lifesmart and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Lifesmart and Franklin
The main advantage of trading using opposite Franklin Lifesmart and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart position performs unexpectedly, Franklin 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 will offset losses from the drop in Franklin's long position.| Franklin Lifesmart vs. Western Assets Emerging | Franklin Lifesmart vs. Inverse Nasdaq 100 Strategy | Franklin Lifesmart vs. Nasdaq 100 2x Strategy | Franklin Lifesmart vs. Oberweis Emerging Growth |
| Franklin vs. Franklin Lifesmart Retirement | Franklin vs. Lifestyle Ii Moderate | Franklin vs. Voya Target Retirement | Franklin vs. Jp Morgan Smartretirement |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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