Correlation Between Franklin Real and Shelton E
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Shelton 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 Real and Shelton E 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 Shelton E Value, you can compare the effects of market volatilities on Franklin Real and Shelton 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 Real with a short position of Shelton E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Shelton E.
Diversification Opportunities for Franklin Real and Shelton E
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Shelton is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Shelton E Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton E Value 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 Shelton E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton E Value has no effect on the direction of Franklin Real i.e., Franklin Real and Shelton E go up and down completely randomly.
Pair Corralation between Franklin Real and Shelton E
Assuming the 90 days horizon Franklin Real Estate is expected to under-perform the Shelton E. In addition to that, Franklin Real is 1.67 times more volatile than Shelton E Value. It trades about -0.05 of its total potential returns per unit of risk. Shelton E Value is currently generating about 0.19 per unit of volatility. If you would invest 1,593 in Shelton E Value on September 12, 2024 and sell it today you would earn a total of 98.00 from holding Shelton E Value or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Real Estate vs. Shelton E Value
Performance |
| Timeline |
| Franklin Real Estate |
| Shelton E Value |
Franklin Real and Shelton E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Shelton E
The main advantage of trading using opposite Franklin Real and Shelton E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Shelton 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 Shelton E will offset losses from the drop in Shelton E's long position.| Franklin Real vs. Mfs Technology Fund | Franklin Real vs. Goldman Sachs Technology | Franklin Real vs. Janus Global Technology | Franklin Real vs. Allianzgi Technology Fund |
| Shelton E vs. Adams Diversified Equity | Shelton E vs. Sentinel Small Pany | Shelton E vs. Delaware Limited Term Diversified | Shelton E vs. Oaktree Diversifiedome |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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