Correlation Between Franklin Gold and Jpmorgan E
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Jpmorgan E 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 Gold and Jpmorgan E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold Precious and Jpmorgan E Bond, you can compare the effects of market volatilities on Franklin Gold and Jpmorgan E 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 Gold with a short position of Jpmorgan E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Jpmorgan E.
Diversification Opportunities for Franklin Gold and Jpmorgan E
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Jpmorgan is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Jpmorgan E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan E Bond and Franklin Gold 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 Gold Precious are associated (or correlated) with Jpmorgan E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan E Bond has no effect on the direction of Franklin Gold i.e., Franklin Gold and Jpmorgan E go up and down completely randomly.
Pair Corralation between Franklin Gold and Jpmorgan E
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 6.7 times more return on investment than Jpmorgan E. However, Franklin Gold is 6.7 times more volatile than Jpmorgan E Bond. It trades about 0.18 of its potential returns per unit of risk. Jpmorgan E Bond is currently generating about 0.23 per unit of risk. If you would invest 1,752 in Franklin Gold Precious on September 14, 2024 and sell it today you would earn a total of 116.00 from holding Franklin Gold Precious or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Jpmorgan E Bond
Performance |
| Timeline |
| Franklin Gold Precious |
| Jpmorgan E Bond |
Franklin Gold and Jpmorgan E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Jpmorgan E
The main advantage of trading using opposite Franklin Gold and Jpmorgan E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Jpmorgan E 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 Jpmorgan E will offset losses from the drop in Jpmorgan E's long position.| Franklin Gold vs. Intermediate Government Bond | Franklin Gold vs. Schwab Government Money | Franklin Gold vs. Payden Government Fund | Franklin Gold vs. Aig Government Money |
| Jpmorgan E vs. Oklahoma Municipal Fund | Jpmorgan E vs. Nuveen Minnesota Municipal | Jpmorgan E vs. T Rowe Price | Jpmorgan E vs. Ab Impact Municipal |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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