Correlation Between Franklin Rising and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Franklin Rising and Fidelity Sai 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 Rising and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Rising Dividends and Fidelity Sai Convertible, you can compare the effects of market volatilities on Franklin Rising and Fidelity Sai 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 Rising with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Rising and Fidelity Sai.
Diversification Opportunities for Franklin Rising and Fidelity Sai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Fidelity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Rising Dividends and Fidelity Sai Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Convertible and Franklin Rising 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 Rising Dividends are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Convertible has no effect on the direction of Franklin Rising i.e., Franklin Rising and Fidelity Sai go up and down completely randomly.
Pair Corralation between Franklin Rising and Fidelity Sai
Assuming the 90 days horizon Franklin Rising Dividends is expected to generate 5.42 times more return on investment than Fidelity Sai. However, Franklin Rising is 5.42 times more volatile than Fidelity Sai Convertible. It trades about 0.05 of its potential returns per unit of risk. Fidelity Sai Convertible is currently generating about 0.25 per unit of risk. If you would invest 8,694 in Franklin Rising Dividends on September 3, 2024 and sell it today you would earn a total of 1,529 from holding Franklin Rising Dividends or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 62.42% |
| Values | Daily Returns |
Franklin Rising Dividends vs. Fidelity Sai Convertible
Performance |
| Timeline |
| Franklin Rising Dividends |
| Fidelity Sai Convertible |
Franklin Rising and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Rising and Fidelity Sai
The main advantage of trading using opposite Franklin Rising and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Rising position performs unexpectedly, Fidelity Sai 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 Fidelity Sai will offset losses from the drop in Fidelity Sai's long position.| Franklin Rising vs. Fidelity Sai Convertible | Franklin Rising vs. Calamos Dynamic Convertible | Franklin Rising vs. Virtus Convertible |
| Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral | Fidelity Sai vs. Calamos Market Neutral |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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