Correlation Between Franklin and Cref Inflation
Can any of the company-specific risk be diversified away by investing in both Franklin and Cref Inflation 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 Cref Inflation 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 Cref Inflation Linked Bond, you can compare the effects of market volatilities on Franklin and Cref Inflation 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 Cref Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Cref Inflation.
Diversification Opportunities for Franklin and Cref Inflation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Cref is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Cref Inflation Linked Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Inflation Linked 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 Cref Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Inflation Linked has no effect on the direction of Franklin i.e., Franklin and Cref Inflation go up and down completely randomly.
Pair Corralation between Franklin and Cref Inflation
If you would invest 100.00 in Franklin Government Money on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Government Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Cref Inflation Linked Bond
Performance |
| Timeline |
| Franklin Government Money |
| Cref Inflation Linked |
Franklin and Cref Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Cref Inflation
The main advantage of trading using opposite Franklin and Cref Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Cref Inflation 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 Cref Inflation will offset losses from the drop in Cref Inflation's long position.| Franklin vs. Mairs Power Growth | Franklin vs. T Rowe Price | Franklin vs. Transamerica Capital Growth | Franklin vs. T Rowe Price |
| Cref Inflation vs. Baird Quality Intermediate | Cref Inflation vs. Blrc Sgy Mnp | Cref Inflation vs. T Rowe Price | Cref Inflation 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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