Correlation Between Franklin Oregon and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Franklin Oregon and Asg Managed 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 Oregon and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Oregon Tax Free and Asg Managed Futures, you can compare the effects of market volatilities on Franklin Oregon and Asg Managed 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 Oregon with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Oregon and Asg Managed.
Diversification Opportunities for Franklin Oregon and Asg Managed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Asg is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Oregon Tax Free and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Franklin Oregon 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 Oregon Tax Free are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Franklin Oregon i.e., Franklin Oregon and Asg Managed go up and down completely randomly.
Pair Corralation between Franklin Oregon and Asg Managed
Assuming the 90 days horizon Franklin Oregon Tax Free is expected to generate 0.27 times more return on investment than Asg Managed. However, Franklin Oregon Tax Free is 3.66 times less risky than Asg Managed. It trades about 0.13 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.11 per unit of risk. If you would invest 1,027 in Franklin Oregon Tax Free on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Franklin Oregon Tax Free or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Oregon Tax Free vs. Asg Managed Futures
Performance |
| Timeline |
| Franklin Oregon Tax |
| Asg Managed Futures |
Franklin Oregon and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Oregon and Asg Managed
The main advantage of trading using opposite Franklin Oregon and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Oregon position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Franklin Oregon vs. John Hancock Financial | Franklin Oregon vs. Vanguard Financials Index | Franklin Oregon vs. Transamerica Financial Life | Franklin Oregon vs. Financials Ultrasector Profund |
| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. American Beacon Ahl |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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