Correlation Between Franklin Government and Eventide Core
Can any of the company-specific risk be diversified away by investing in both Franklin Government and Eventide Core 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 Government and Eventide Core 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 Eventide Core Bond, you can compare the effects of market volatilities on Franklin Government and Eventide Core 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 Government with a short position of Eventide Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and Eventide Core.
Diversification Opportunities for Franklin Government and Eventide Core
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Eventide is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Eventide Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Core Bond and Franklin Government 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 Eventide Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Core Bond has no effect on the direction of Franklin Government i.e., Franklin Government and Eventide Core go up and down completely randomly.
Pair Corralation between Franklin Government and Eventide Core
If you would invest 817.00 in Eventide Core Bond on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Eventide Core Bond or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Eventide Core Bond
Performance |
| Timeline |
| Franklin Government Money |
| Eventide Core Bond |
Franklin Government and Eventide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and Eventide Core
The main advantage of trading using opposite Franklin Government and Eventide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government position performs unexpectedly, Eventide Core 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 Eventide Core will offset losses from the drop in Eventide Core's long position.| Franklin Government vs. Buffalo High Yield | Franklin Government vs. Fidelity Capital Income | Franklin Government vs. T Rowe Price | Franklin Government vs. Prudential High Yield |
| Eventide Core vs. Lord Abbett Inflation | Eventide Core vs. Federated Hermes Inflation | Eventide Core vs. Ab Bond Inflation | Eventide Core vs. Aqr Managed Futures |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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