Correlation Between Franklin and Cref Money
Can any of the company-specific risk be diversified away by investing in both Franklin and Cref Money 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 Money 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 Money Market, you can compare the effects of market volatilities on Franklin and Cref Money 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 Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Cref Money.
Diversification Opportunities for Franklin and Cref Money
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 Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Franklin i.e., Franklin and Cref Money go up and down completely randomly.
Pair Corralation between Franklin and Cref Money
Assuming the 90 days horizon Franklin Government Money is expected to under-perform the Cref Money. In addition to that, Franklin is 140.21 times more volatile than Cref Money Market. It trades about -0.03 of its total potential returns per unit of risk. Cref Money Market is currently generating about 0.8 per unit of volatility. If you would invest 2,709 in Cref Money Market on October 11, 2024 and sell it today you would earn a total of 277.00 from holding Cref Money Market or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Franklin Government Money vs. Cref Money Market
Performance |
| Timeline |
| Franklin Government Money |
| Cref Money Market |
Franklin and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Cref Money
The main advantage of trading using opposite Franklin and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Cref Money 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 Money will offset losses from the drop in Cref Money's long position.| Franklin vs. Mairs Power Growth | Franklin vs. T Rowe Price | Franklin vs. Transamerica Capital Growth | Franklin vs. T Rowe Price |
| Cref Money vs. Us Global Investors | Cref Money vs. Asg Global Alternatives | Cref Money vs. Ab Global Bond | Cref Money vs. Artisan Global Opportunities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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