Correlation Between Franklin Low and SPACE
Can any of the company-specific risk be diversified away by investing in both Franklin Low and SPACE 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 Low and SPACE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Low Duration and SPACE, you can compare the effects of market volatilities on Franklin Low and SPACE 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 Low with a short position of SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Low and SPACE.
Diversification Opportunities for Franklin Low and SPACE
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and SPACE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Low Duration and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE and Franklin Low 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 Low Duration are associated (or correlated) with SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of Franklin Low i.e., Franklin Low and SPACE go up and down completely randomly.
Pair Corralation between Franklin Low and SPACE
Assuming the 90 days horizon Franklin Low is expected to generate 1523.76 times less return on investment than SPACE. But when comparing it to its historical volatility, Franklin Low Duration is 1129.68 times less risky than SPACE. It trades about 0.13 of its potential returns per unit of risk. SPACE is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 0.00 in SPACE on September 4, 2024 and sell it today you would earn a total of 59.00 from holding SPACE or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.94% |
| Values | Daily Returns |
Franklin Low Duration vs. SPACE
Performance |
| Timeline |
| Franklin Low Duration |
| SPACE |
Franklin Low and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Low and SPACE
The main advantage of trading using opposite Franklin Low and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Low position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE's long position.| Franklin Low vs. Franklin Mutual Beacon | Franklin Low vs. Templeton Developing Markets | Franklin Low vs. Franklin Mutual Global | Franklin Low vs. Franklin Mutual Global |
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 Stocks Directory module to find actively traded stocks across global markets.
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