Correlation Between Franklin and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Franklin and Aqr Long-short 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 Aqr Long-short 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 Aqr Long Short Equity, you can compare the effects of market volatilities on Franklin and Aqr Long-short 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 Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Aqr Long-short.
Diversification Opportunities for Franklin and Aqr Long-short
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short 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 Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Franklin i.e., Franklin and Aqr Long-short go up and down completely randomly.
Pair Corralation between Franklin and Aqr Long-short
If you would invest 100.00 in Franklin Government Money on October 9, 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. Aqr Long Short Equity
Performance |
| Timeline |
| Franklin Government Money |
| Aqr Long Short |
Franklin and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Aqr Long-short
The main advantage of trading using opposite Franklin and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Aqr Long-short 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 Aqr Long-short will offset losses from the drop in Aqr Long-short's long position.| Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard 500 Index | Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard Total Stock |
| Aqr Long-short vs. Qs Large Cap | Aqr Long-short vs. Rationalpier 88 Convertible | Aqr Long-short vs. T Rowe Price | Aqr Long-short vs. Rbb Fund |
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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