Correlation Between Franklin and Hunter Small
Can any of the company-specific risk be diversified away by investing in both Franklin and Hunter Small 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 and Hunter Small 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 Hunter Small Cap, you can compare the effects of market volatilities on Franklin and Hunter Small 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 with a short position of Hunter Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Hunter Small.
Diversification Opportunities for Franklin and Hunter Small
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Hunter is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Hunter Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Small Cap and Franklin 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 Hunter Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Small Cap has no effect on the direction of Franklin i.e., Franklin and Hunter Small go up and down completely randomly.
Pair Corralation between Franklin and Hunter Small
If you would invest 1,241 in Hunter Small Cap on October 30, 2024 and sell it today you would earn a total of 44.00 from holding Hunter Small Cap or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Hunter Small Cap
Performance |
| Timeline |
| Franklin Government Money |
| Hunter Small Cap |
Franklin and Hunter Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Hunter Small
The main advantage of trading using opposite Franklin and Hunter Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Hunter Small 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 Hunter Small will offset losses from the drop in Hunter Small's long position.| Franklin vs. Pace High Yield | Franklin vs. Prudential High Yield | Franklin vs. Needham Aggressive Growth | Franklin vs. Ab High Income |
| Hunter Small vs. California Bond Fund | Hunter Small vs. Ab Bond Inflation | Hunter Small vs. Barings High Yield | Hunter Small vs. Intermediate Term Tax Free Bond |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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