Correlation Between Franklin Connecticut and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Franklin Connecticut 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 Franklin Connecticut and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Necticut Tax Free and Franklin Templeton Smacs, you can compare the effects of market volatilities on Franklin Connecticut 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 Franklin Connecticut with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Connecticut and Franklin Templeton.
Diversification Opportunities for Franklin Connecticut and Franklin Templeton
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Franklin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Necticut Tax Free and Franklin Templeton Smacs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton Smacs and Franklin Connecticut 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 Necticut Tax Free 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 Smacs has no effect on the direction of Franklin Connecticut i.e., Franklin Connecticut and Franklin Templeton go up and down completely randomly.
Pair Corralation between Franklin Connecticut and Franklin Templeton
Assuming the 90 days horizon Franklin Connecticut is expected to generate 3.0 times less return on investment than Franklin Templeton. But when comparing it to its historical volatility, Franklin Necticut Tax Free is 4.5 times less risky than Franklin Templeton. It trades about 0.09 of its potential returns per unit of risk. Franklin Templeton Smacs is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 765.00 in Franklin Templeton Smacs on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Franklin Templeton Smacs or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Necticut Tax Free vs. Franklin Templeton Smacs
Performance |
| Timeline |
| Franklin Necticut Tax |
| Franklin Templeton Smacs |
Franklin Connecticut and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Connecticut and Franklin Templeton
The main advantage of trading using opposite Franklin Connecticut and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Connecticut 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.| Franklin Connecticut vs. Transamerica Financial Life | Franklin Connecticut vs. Davis Financial Fund | Franklin Connecticut vs. Fidelity Advisor Financial | Franklin Connecticut vs. Goldman Sachs Financial |
| Franklin Templeton vs. Nationwide Global Equity | Franklin Templeton vs. Old Westbury Large | Franklin Templeton vs. Artisan Thematic Fund | Franklin Templeton vs. Semiconductor Ultrasector 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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