Correlation Between Franklin FTSE and FLFR
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and FLFR 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 FLFR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Mexico and FLFR, you can compare the effects of market volatilities on Franklin FTSE and FLFR 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 FLFR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and FLFR.
Diversification Opportunities for Franklin FTSE and FLFR
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and FLFR is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Mexico and FLFR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLFR 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 Mexico are associated (or correlated) with FLFR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLFR has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and FLFR go up and down completely randomly.
Pair Corralation between Franklin FTSE and FLFR
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 |
Franklin FTSE Mexico vs. FLFR
Performance |
| Timeline |
| Franklin FTSE Mexico |
| FLFR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin FTSE and FLFR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and FLFR
The main advantage of trading using opposite Franklin FTSE and FLFR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, FLFR 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 FLFR will offset losses from the drop in FLFR's long position.| Franklin FTSE vs. HUMANA INC | Franklin FTSE vs. SCOR PK | Franklin FTSE vs. Aquagold International | Franklin FTSE vs. Ab Pennsylvania Portfolio |
| FLFR vs. HUMANA INC | FLFR vs. SCOR PK | FLFR vs. Aquagold International | FLFR 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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