Correlation Between Franklin Lifesmart and Oppenheimer Global
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart and Oppenheimer Global 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 Oppenheimer Global 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 Oppenheimer Global Allocation, you can compare the effects of market volatilities on Franklin Lifesmart and Oppenheimer Global 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 Oppenheimer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Oppenheimer Global.
Diversification Opportunities for Franklin Lifesmart and Oppenheimer Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Oppenheimer is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart Retirement and Oppenheimer Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Global 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 Oppenheimer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Global has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Oppenheimer Global go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Oppenheimer Global
Assuming the 90 days horizon Franklin Lifesmart Retirement is expected to generate 0.64 times more return on investment than Oppenheimer Global. However, Franklin Lifesmart Retirement is 1.56 times less risky than Oppenheimer Global. It trades about 0.12 of its potential returns per unit of risk. Oppenheimer Global Allocation is currently generating about 0.08 per unit of risk. If you would invest 941.00 in Franklin Lifesmart Retirement on November 5, 2024 and sell it today you would earn a total of 122.00 from holding Franklin Lifesmart Retirement or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Lifesmart Retirement vs. Oppenheimer Global Allocation
Performance |
| Timeline |
| Franklin Lifesmart |
| Oppenheimer Global |
Franklin Lifesmart and Oppenheimer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Lifesmart and Oppenheimer Global
The main advantage of trading using opposite Franklin Lifesmart and Oppenheimer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart position performs unexpectedly, Oppenheimer Global 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 Oppenheimer Global will offset losses from the drop in Oppenheimer Global's long position.| Franklin Lifesmart vs. Jpmorgan Ultra Short Municipal | Franklin Lifesmart vs. Old Westbury California | Franklin Lifesmart vs. Oklahoma Municipal Fund | Franklin Lifesmart vs. Franklin Adjustable Government |
| Oppenheimer Global vs. Touchstone Large Cap | Oppenheimer Global vs. Morningstar Global Income | Oppenheimer Global vs. Qs Global Equity | Oppenheimer Global vs. Tax Managed Large Cap |
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.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |