Correlation Between First Trustconfluence and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both First Trustconfluence and Franklin Templeton 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 First Trustconfluence and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trustconfluence Small and Franklin Templeton Multi Asset, you can compare the effects of market volatilities on First Trustconfluence and Franklin Templeton 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 First Trustconfluence with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trustconfluence and Franklin Templeton.
Diversification Opportunities for First Trustconfluence and Franklin Templeton
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Franklin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding First Trustconfluence Small and Franklin Templeton Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and First Trustconfluence 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 First Trustconfluence Small are associated (or correlated) with Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton has no effect on the direction of First Trustconfluence i.e., First Trustconfluence and Franklin Templeton go up and down completely randomly.
Pair Corralation between First Trustconfluence and Franklin Templeton
Assuming the 90 days horizon First Trustconfluence is expected to generate 1.05 times less return on investment than Franklin Templeton. In addition to that, First Trustconfluence is 7.5 times more volatile than Franklin Templeton Multi Asset. It trades about 0.03 of its total potential returns per unit of risk. Franklin Templeton Multi Asset is currently generating about 0.21 per unit of volatility. If you would invest 2,098 in Franklin Templeton Multi Asset on August 31, 2024 and sell it today you would earn a total of 339.00 from holding Franklin Templeton Multi Asset or generate 16.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trustconfluence Small vs. Franklin Templeton Multi Asset
Performance |
| Timeline |
| First Trustconfluence |
| Franklin Templeton |
First Trustconfluence and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trustconfluence and Franklin Templeton
The main advantage of trading using opposite First Trustconfluence and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trustconfluence position performs unexpectedly, Franklin Templeton 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 Franklin Templeton will offset losses from the drop in Franklin Templeton's long position.| First Trustconfluence vs. Towpath Technology | First Trustconfluence vs. Columbia Global Technology | First Trustconfluence vs. Mfs Technology Fund | First Trustconfluence vs. Science Technology Fund |
| Franklin Templeton vs. Mfs International Diversification | Franklin Templeton vs. HUMANA INC | Franklin Templeton vs. Aquagold International | Franklin Templeton vs. Barloworld Ltd ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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