Correlation Between Franklin Real and American Beacon
Can any of the company-specific risk be diversified away by investing in both Franklin Real and American Beacon 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 Real and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and American Beacon Mid Cap, you can compare the effects of market volatilities on Franklin Real and American Beacon 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 Real with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and American Beacon.
Diversification Opportunities for Franklin Real and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and American Beacon Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Mid and Franklin Real 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 Real Estate are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Mid has no effect on the direction of Franklin Real i.e., Franklin Real and American Beacon go up and down completely randomly.
Pair Corralation between Franklin Real and American Beacon
If you would invest 1,648 in Franklin Real Estate on September 14, 2024 and sell it today you would earn a total of 258.00 from holding Franklin Real Estate or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Real Estate vs. American Beacon Mid Cap
Performance |
| Timeline |
| Franklin Real Estate |
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Real and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and American Beacon
The main advantage of trading using opposite Franklin Real and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Franklin Real vs. Realty Income | Franklin Real vs. Dynex Capital | Franklin Real vs. First Industrial Realty | Franklin Real vs. Healthcare Realty Trust |
| American Beacon vs. Jhancock Real Estate | American Beacon vs. Simt Real Estate | American Beacon vs. Pender Real Estate | American Beacon vs. Franklin Real Estate |
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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