Correlation Between Franklin New and Ab Global
Can any of the company-specific risk be diversified away by investing in both Franklin New and Ab Global 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 New and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin New Jersey and Ab Global Bond, you can compare the effects of market volatilities on Franklin New and Ab Global 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 New with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin New and Ab Global.
Diversification Opportunities for Franklin New and Ab Global
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and ANAGX is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Franklin New Jersey and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Franklin New 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 New Jersey are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Franklin New i.e., Franklin New and Ab Global go up and down completely randomly.
Pair Corralation between Franklin New and Ab Global
Assuming the 90 days horizon Franklin New Jersey is expected to generate 0.64 times more return on investment than Ab Global. However, Franklin New Jersey is 1.55 times less risky than Ab Global. It trades about 0.53 of its potential returns per unit of risk. Ab Global Bond is currently generating about 0.28 per unit of risk. If you would invest 1,035 in Franklin New Jersey on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Franklin New Jersey or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin New Jersey vs. Ab Global Bond
Performance |
| Timeline |
| Franklin New Jersey |
| Ab Global Bond |
Franklin New and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin New and Ab Global
The main advantage of trading using opposite Franklin New and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin New position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Franklin New vs. Franklin Mutual Beacon | Franklin New vs. Templeton Developing Markets | Franklin New vs. Franklin Mutual Global | Franklin New vs. Franklin Mutual Global |
| Ab Global vs. Qs Global Equity | Ab Global vs. Touchstone International Equity | Ab Global vs. Rbc Global Equity | Ab Global vs. Ab Select Equity |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |