Correlation Between Franklin Moderate and Amg Managers
Can any of the company-specific risk be diversified away by investing in both Franklin Moderate and Amg Managers 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 Moderate and Amg Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Moderate Allocation and Amg Managers Centersquare, you can compare the effects of market volatilities on Franklin Moderate and Amg Managers 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 Moderate with a short position of Amg Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Moderate and Amg Managers.
Diversification Opportunities for Franklin Moderate and Amg Managers
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Amg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Moderate Allocation and Amg Managers Centersquare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Managers Centersquare and Franklin Moderate 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 Moderate Allocation are associated (or correlated) with Amg Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Managers Centersquare has no effect on the direction of Franklin Moderate i.e., Franklin Moderate and Amg Managers go up and down completely randomly.
Pair Corralation between Franklin Moderate and Amg Managers
Assuming the 90 days horizon Franklin Moderate is expected to generate 1.31 times less return on investment than Amg Managers. But when comparing it to its historical volatility, Franklin Moderate Allocation is 2.13 times less risky than Amg Managers. It trades about 0.11 of its potential returns per unit of risk. Amg Managers Centersquare is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Amg Managers Centersquare on September 2, 2024 and sell it today you would earn a total of 272.00 from holding Amg Managers Centersquare or generate 28.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Moderate Allocation vs. Amg Managers Centersquare
Performance |
| Timeline |
| Franklin Moderate |
| Amg Managers Centersquare |
Franklin Moderate and Amg Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Moderate and Amg Managers
The main advantage of trading using opposite Franklin Moderate and Amg Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Moderate position performs unexpectedly, Amg Managers 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 Amg Managers will offset losses from the drop in Amg Managers' long position.| Franklin Moderate vs. Jennison Natural Resources | Franklin Moderate vs. Oil Gas Ultrasector | Franklin Moderate vs. Clearbridge Energy Mlp | Franklin Moderate vs. Alpsalerian Energy Infrastructure |
| Amg Managers vs. Fidelity Series 1000 | Amg Managers vs. Qs Large Cap | Amg Managers vs. John Hancock Investment | Amg Managers vs. Large Cap Growth Profund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |