Correlation Between Franklin Large and Altagas Cum
Can any of the company-specific risk be diversified away by investing in both Franklin Large and Altagas Cum 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 Large and Altagas Cum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Large Cap and Altagas Cum Red, you can compare the effects of market volatilities on Franklin Large and Altagas Cum 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 Large with a short position of Altagas Cum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Large and Altagas Cum.
Diversification Opportunities for Franklin Large and Altagas Cum
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Altagas is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Large Cap and Altagas Cum Red in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Cum Red and Franklin Large 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 Large Cap are associated (or correlated) with Altagas Cum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Cum Red has no effect on the direction of Franklin Large i.e., Franklin Large and Altagas Cum go up and down completely randomly.
Pair Corralation between Franklin Large and Altagas Cum
Assuming the 90 days trading horizon Franklin Large is expected to generate 1.01 times less return on investment than Altagas Cum. In addition to that, Franklin Large is 1.16 times more volatile than Altagas Cum Red. It trades about 0.17 of its total potential returns per unit of risk. Altagas Cum Red is currently generating about 0.2 per unit of volatility. If you would invest 1,855 in Altagas Cum Red on August 25, 2024 and sell it today you would earn a total of 64.00 from holding Altagas Cum Red or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Franklin Large Cap vs. Altagas Cum Red
Performance |
| Timeline |
| Franklin Large Cap |
| Altagas Cum Red |
Franklin Large and Altagas Cum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Large and Altagas Cum
The main advantage of trading using opposite Franklin Large and Altagas Cum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Large position performs unexpectedly, Altagas Cum 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 Altagas Cum will offset losses from the drop in Altagas Cum's long position.| Franklin Large vs. Franklin Bissett Corporate | Franklin Large vs. FT AlphaDEX Industrials | Franklin Large vs. Dynamic Active Dividend |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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