Correlation Between Franklin and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Franklin and Mutual Of 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 Mutual Of 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 Mutual Of America, you can compare the effects of market volatilities on Franklin and Mutual Of 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 Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Mutual Of.
Diversification Opportunities for Franklin and Mutual Of
Very good diversification
The 3 months correlation between Franklin and Mutual is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America 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 Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Franklin i.e., Franklin and Mutual Of go up and down completely randomly.
Pair Corralation between Franklin and Mutual Of
If you would invest 1,450 in Mutual Of America on November 1, 2024 and sell it today you would earn a total of 29.00 from holding Mutual Of America or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Mutual Of America
Performance |
| Timeline |
| Franklin Government Money |
| Mutual Of America |
Franklin and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Mutual Of
The main advantage of trading using opposite Franklin and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Franklin vs. Vanguard Information Technology | Franklin vs. Science Technology Fund | Franklin vs. Blackrock Science Technology | Franklin vs. Dreyfus Technology Growth |
| Mutual Of vs. Blackrock Exchange Portfolio | Mutual Of vs. Hsbc Treasury Money | Mutual Of vs. Edward Jones Money | Mutual Of vs. Franklin Government Money |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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