Correlation Between Franklin Natural and 70082LAB3
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By analyzing existing cross correlation between Franklin Natural Resources and US70082LAB36, you can compare the effects of market volatilities on Franklin Natural and 70082LAB3 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 Natural with a short position of 70082LAB3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Natural and 70082LAB3.
Diversification Opportunities for Franklin Natural and 70082LAB3
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and 70082LAB3 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Natural Resources and US70082LAB36 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70082LAB36 and Franklin Natural 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 Natural Resources are associated (or correlated) with 70082LAB3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70082LAB36 has no effect on the direction of Franklin Natural i.e., Franklin Natural and 70082LAB3 go up and down completely randomly.
Pair Corralation between Franklin Natural and 70082LAB3
Assuming the 90 days horizon Franklin Natural Resources is expected to generate 0.56 times more return on investment than 70082LAB3. However, Franklin Natural Resources is 1.8 times less risky than 70082LAB3. It trades about 0.2 of its potential returns per unit of risk. US70082LAB36 is currently generating about -0.24 per unit of risk. If you would invest 3,049 in Franklin Natural Resources on August 31, 2024 and sell it today you would earn a total of 110.00 from holding Franklin Natural Resources or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
Franklin Natural Resources vs. US70082LAB36
Performance |
| Timeline |
| Franklin Natural Res |
| US70082LAB36 |
Franklin Natural and 70082LAB3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Natural and 70082LAB3
The main advantage of trading using opposite Franklin Natural and 70082LAB3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Natural position performs unexpectedly, 70082LAB3 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 70082LAB3 will offset losses from the drop in 70082LAB3's long position.| Franklin Natural vs. Lord Abbett Government | Franklin Natural vs. Government Securities Fund | Franklin Natural vs. Us Government Securities | Franklin Natural vs. Aig Government Money |
| 70082LAB3 vs. National Vision Holdings | 70082LAB3 vs. Titan Machinery | 70082LAB3 vs. Grocery Outlet Holding | 70082LAB3 vs. Dolphin Entertainment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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