Correlation Between Franklin Government and First Investors
Can any of the company-specific risk be diversified away by investing in both Franklin Government and First Investors 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 Government and First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and First Investors Total, you can compare the effects of market volatilities on Franklin Government and First Investors 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 Government with a short position of First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and First Investors.
Diversification Opportunities for Franklin Government and First Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total and Franklin Government 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 Government Money are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Franklin Government i.e., Franklin Government and First Investors go up and down completely randomly.
Pair Corralation between Franklin Government and First Investors
If you would invest 1,377 in First Investors Total on October 23, 2024 and sell it today you would earn a total of 0.00 from holding First Investors Total or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Franklin Government Money vs. First Investors Total
Performance |
| Timeline |
| Franklin Government Money |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Government and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and First Investors
The main advantage of trading using opposite Franklin Government and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Franklin Government vs. Forum Real Estate | Franklin Government vs. Real Estate Ultrasector | Franklin Government vs. Tiaa Cref Real Estate | Franklin Government vs. Prudential Real Estate |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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