Correlation Between Franklin Real and Short Real
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Short Real 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 Short Real 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 Short Real Estate, you can compare the effects of market volatilities on Franklin Real and Short Real 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 Short Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Short Real.
Diversification Opportunities for Franklin Real and Short Real
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Short is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Short Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Real Estate 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 Short Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Real Estate has no effect on the direction of Franklin Real i.e., Franklin Real and Short Real go up and down completely randomly.
Pair Corralation between Franklin Real and Short Real
Assuming the 90 days horizon Franklin Real Estate is expected to generate 0.98 times more return on investment than Short Real. However, Franklin Real Estate is 1.02 times less risky than Short Real. It trades about 0.05 of its potential returns per unit of risk. Short Real Estate is currently generating about -0.04 per unit of risk. If you would invest 1,632 in Franklin Real Estate on September 12, 2024 and sell it today you would earn a total of 311.00 from holding Franklin Real Estate or generate 19.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Real Estate vs. Short Real Estate
Performance |
| Timeline |
| Franklin Real Estate |
| Short Real Estate |
Franklin Real and Short Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Short Real
The main advantage of trading using opposite Franklin Real and Short Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Short Real 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 Short Real will offset losses from the drop in Short Real's long position.| Franklin Real vs. Guggenheim Risk Managed | Franklin Real vs. HUMANA INC | Franklin Real vs. Barloworld Ltd ADR | Franklin Real vs. Morningstar Unconstrained Allocation |
| Short Real vs. HUMANA INC | Short Real vs. Barloworld Ltd ADR | Short Real vs. Morningstar Unconstrained Allocation | Short Real vs. Thrivent High Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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