Correlation Between Franklin Double and Franklin All
Can any of the company-specific risk be diversified away by investing in both Franklin Double and Franklin All 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 Double and Franklin All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Double Tax Free and Franklin All Cap, you can compare the effects of market volatilities on Franklin Double and Franklin All 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 Double with a short position of Franklin All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Double and Franklin All.
Diversification Opportunities for Franklin Double and Franklin All
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Double Tax Free and Franklin All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin All Cap and Franklin Double 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 Double Tax Free are associated (or correlated) with Franklin All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin All Cap has no effect on the direction of Franklin Double i.e., Franklin Double and Franklin All go up and down completely randomly.
Pair Corralation between Franklin Double and Franklin All
If you would invest (100.00) in Franklin All Cap on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Franklin All Cap or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Double Tax Free vs. Franklin All Cap
Performance |
| Timeline |
| Franklin Double Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin All Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Double and Franklin All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Double and Franklin All
The main advantage of trading using opposite Franklin Double and Franklin All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Double position performs unexpectedly, Franklin All 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 All will offset losses from the drop in Franklin All's long position.| Franklin Double vs. Dunham Large Cap | Franklin Double vs. Tax Managed Large Cap | Franklin Double vs. Qs Large Cap | Franklin Double vs. Americafirst Large Cap |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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