Correlation Between Franklin and Cutler Equity
Can any of the company-specific risk be diversified away by investing in both Franklin and Cutler Equity 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 Cutler Equity 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 Cutler Equity, you can compare the effects of market volatilities on Franklin and Cutler Equity 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 Cutler Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Cutler Equity.
Diversification Opportunities for Franklin and Cutler Equity
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Cutler is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Cutler Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cutler Equity 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 Cutler Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cutler Equity has no effect on the direction of Franklin i.e., Franklin and Cutler Equity go up and down completely randomly.
Pair Corralation between Franklin and Cutler Equity
If you would invest 100.00 in Franklin Government Money on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Government Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Cutler Equity
Performance |
| Timeline |
| Franklin Government Money |
| Cutler Equity |
Franklin and Cutler Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Cutler Equity
The main advantage of trading using opposite Franklin and Cutler Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Cutler Equity 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 Cutler Equity will offset losses from the drop in Cutler Equity's long position.| Franklin vs. Rbb Fund Trust | Franklin vs. Barings Global Floating | Franklin vs. Kinetics Global Fund | Franklin vs. Morgan Stanley Global |
| Cutler Equity vs. Federated Mdt Large | Cutler Equity vs. Nationwide Ziegler Nyse | Cutler Equity vs. HUMANA INC | Cutler Equity vs. Aquagold International |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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