Correlation Between Franklin FTSE and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and Franklin FTSE 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 Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Brazil and Franklin FTSE Brazil, you can compare the effects of market volatilities on Franklin FTSE and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and Franklin FTSE.
Diversification Opportunities for Franklin FTSE and Franklin FTSE
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Brazil and Franklin FTSE Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Brazil 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 Brazil are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Brazil has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and Franklin FTSE go up and down completely randomly.
Pair Corralation between Franklin FTSE and Franklin FTSE
Assuming the 90 days trading horizon Franklin FTSE Brazil is expected to generate 2.03 times more return on investment than Franklin FTSE. However, Franklin FTSE is 2.03 times more volatile than Franklin FTSE Brazil. It trades about -0.02 of its potential returns per unit of risk. Franklin FTSE Brazil is currently generating about -0.05 per unit of risk. If you would invest 2,631 in Franklin FTSE Brazil on September 2, 2024 and sell it today you would lose (426.00) from holding Franklin FTSE Brazil or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin FTSE Brazil vs. Franklin FTSE Brazil
Performance |
| Timeline |
| Franklin FTSE Brazil |
| Franklin FTSE Brazil |
Franklin FTSE and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and Franklin FTSE
The main advantage of trading using opposite Franklin FTSE and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, Franklin FTSE 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 FTSE will offset losses from the drop in Franklin FTSE's long position.| Franklin FTSE vs. iShares Treasury Bond | Franklin FTSE vs. iShares Treasury Bond | Franklin FTSE vs. Amundi Treasury Bond | Franklin FTSE vs. SPDR Barclays 10 |
| Franklin FTSE vs. iShares Treasury Bond | Franklin FTSE vs. iShares Treasury Bond | Franklin FTSE vs. Amundi Treasury Bond | Franklin FTSE vs. SPDR Barclays 10 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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