Correlation Between Franklin Mutual and Oppenheimer Aggrssv
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Oppenheimer Aggrssv 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 Mutual and Oppenheimer Aggrssv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Shares and Oppenheimer Aggrssv Invstr, you can compare the effects of market volatilities on Franklin Mutual and Oppenheimer Aggrssv 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 Mutual with a short position of Oppenheimer Aggrssv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Oppenheimer Aggrssv.
Diversification Opportunities for Franklin Mutual and Oppenheimer Aggrssv
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Oppenheimer is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Shares and Oppenheimer Aggrssv Invstr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Aggrssv and Franklin Mutual 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 Mutual Shares are associated (or correlated) with Oppenheimer Aggrssv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Aggrssv has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Oppenheimer Aggrssv go up and down completely randomly.
Pair Corralation between Franklin Mutual and Oppenheimer Aggrssv
Assuming the 90 days horizon Franklin Mutual Shares is expected to generate 1.34 times more return on investment than Oppenheimer Aggrssv. However, Franklin Mutual is 1.34 times more volatile than Oppenheimer Aggrssv Invstr. It trades about 0.29 of its potential returns per unit of risk. Oppenheimer Aggrssv Invstr is currently generating about 0.35 per unit of risk. If you would invest 2,764 in Franklin Mutual Shares on September 4, 2024 and sell it today you would earn a total of 151.00 from holding Franklin Mutual Shares or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Shares vs. Oppenheimer Aggrssv Invstr
Performance |
| Timeline |
| Franklin Mutual Shares |
| Oppenheimer Aggrssv |
Franklin Mutual and Oppenheimer Aggrssv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Oppenheimer Aggrssv
The main advantage of trading using opposite Franklin Mutual and Oppenheimer Aggrssv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Oppenheimer Aggrssv 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 Oppenheimer Aggrssv will offset losses from the drop in Oppenheimer Aggrssv's long position.| Franklin Mutual vs. Invesco Energy Fund | Franklin Mutual vs. Energy Basic Materials | Franklin Mutual vs. Firsthand Alternative Energy | Franklin Mutual vs. Icon Natural Resources |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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