Correlation Between Franklin Growth and Eip Growth
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Eip Growth 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 Eip Growth 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 Eip Growth And, you can compare the effects of market volatilities on Franklin Growth and Eip Growth 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 Eip Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Eip Growth.
Diversification Opportunities for Franklin Growth and Eip Growth
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Eip is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Eip Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eip Growth And 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 Eip Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eip Growth And has no effect on the direction of Franklin Growth i.e., Franklin Growth and Eip Growth go up and down completely randomly.
Pair Corralation between Franklin Growth and Eip Growth
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.54 times more return on investment than Eip Growth. However, Franklin Growth is 1.54 times more volatile than Eip Growth And. It trades about 0.07 of its potential returns per unit of risk. Eip Growth And is currently generating about 0.09 per unit of risk. If you would invest 4,253 in Franklin Growth Opportunities on August 24, 2024 and sell it today you would earn a total of 2,011 from holding Franklin Growth Opportunities or generate 47.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Eip Growth And
Performance |
| Timeline |
| Franklin Growth Oppo |
| Eip Growth And |
Franklin Growth and Eip Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Eip Growth
The main advantage of trading using opposite Franklin Growth and Eip Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Eip Growth 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 Eip Growth will offset losses from the drop in Eip Growth's long position.| Franklin Growth vs. Transamerica Emerging Markets | Franklin Growth vs. Western Assets Emerging | Franklin Growth vs. Dws Emerging Markets | Franklin Growth vs. Origin Emerging Markets |
| Eip Growth vs. Oppenheimer Steelpath Mlp | Eip Growth vs. Goldman Sachs Mlp | Eip Growth vs. HUMANA INC | Eip Growth vs. Aquagold International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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