Correlation Between Franklin and Mesirow Financial
Can any of the company-specific risk be diversified away by investing in both Franklin and Mesirow Financial 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 Mesirow Financial 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 Mesirow Financial Small, you can compare the effects of market volatilities on Franklin and Mesirow Financial 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 Mesirow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Mesirow Financial.
Diversification Opportunities for Franklin and Mesirow Financial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Mesirow is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Mesirow Financial Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesirow Financial Small 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 Mesirow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesirow Financial Small has no effect on the direction of Franklin i.e., Franklin and Mesirow Financial go up and down completely randomly.
Pair Corralation between Franklin and Mesirow Financial
If you would invest 1,258 in Mesirow Financial Small on November 4, 2024 and sell it today you would earn a total of 44.00 from holding Mesirow Financial Small or generate 3.5% 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. Mesirow Financial Small
Performance |
| Timeline |
| Franklin Government Money |
| Mesirow Financial Small |
Franklin and Mesirow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Mesirow Financial
The main advantage of trading using opposite Franklin and Mesirow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Mesirow Financial 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 Mesirow Financial will offset losses from the drop in Mesirow Financial's long position.| Franklin vs. Retirement Living Through | Franklin vs. Sierra E Retirement | Franklin vs. College Retirement Equities | Franklin vs. Franklin Lifesmart Retirement |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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