Correlation Between Franklin Growth and Ubs International
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Ubs International 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 Growth and Ubs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Ubs International Sustainable, you can compare the effects of market volatilities on Franklin Growth and Ubs International 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 Growth with a short position of Ubs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Ubs International.
Diversification Opportunities for Franklin Growth and Ubs International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Ubs is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International and Franklin Growth 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 Growth Opportunities are associated (or correlated) with Ubs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of Franklin Growth i.e., Franklin Growth and Ubs International go up and down completely randomly.
Pair Corralation between Franklin Growth and Ubs International
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.41 times more return on investment than Ubs International. However, Franklin Growth is 1.41 times more volatile than Ubs International Sustainable. It trades about 0.16 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about 0.02 per unit of risk. If you would invest 5,870 in Franklin Growth Opportunities on September 12, 2024 and sell it today you would earn a total of 582.00 from holding Franklin Growth Opportunities or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Ubs International Sustainable
Performance |
| Timeline |
| Franklin Growth Oppo |
| Ubs International |
Franklin Growth and Ubs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Ubs International
The main advantage of trading using opposite Franklin Growth and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Ubs International 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 Ubs International will offset losses from the drop in Ubs International's long position.| Franklin Growth vs. Gmo High Yield | Franklin Growth vs. Pax High Yield | Franklin Growth vs. Fidelity Capital Income | Franklin Growth vs. Jpmorgan High Yield |
| Ubs International vs. SCOR PK | Ubs International vs. Morningstar Unconstrained Allocation | Ubs International vs. Via Renewables | Ubs International vs. Bondbloxx ETF Trust |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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