Correlation Between Franklin and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Franklin and Calvert Global 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 and Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Calvert Global Energy, you can compare the effects of market volatilities on Franklin and Calvert Global 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 with a short position of Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Calvert Global.
Diversification Opportunities for Franklin and Calvert Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Calvert is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy and Franklin 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 Government Money are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Franklin i.e., Franklin and Calvert Global go up and down completely randomly.
Pair Corralation between Franklin and Calvert Global
Assuming the 90 days horizon Franklin Government Money is expected to generate 0.12 times more return on investment than Calvert Global. However, Franklin Government Money is 8.16 times less risky than Calvert Global. It trades about 0.13 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.01 per unit of risk. If you would invest 94.00 in Franklin Government Money on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Franklin Government Money or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Franklin Government Money vs. Calvert Global Energy
Performance |
| Timeline |
| Franklin Government Money |
| Calvert Global Energy |
Franklin and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Calvert Global
The main advantage of trading using opposite Franklin and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard 500 Index | Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard Total Stock |
| Calvert Global vs. Jpmorgan Small Cap | Calvert Global vs. Qs Small Capitalization | Calvert Global vs. Chartwell Small Cap | Calvert Global vs. Vanguard Small Cap Growth |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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