Correlation Between Franklin and Meeder Funds
Can any of the company-specific risk be diversified away by investing in both Franklin and Meeder Funds 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 Meeder Funds 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 Meeder Funds , you can compare the effects of market volatilities on Franklin and Meeder Funds 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 Meeder Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Meeder Funds.
Diversification Opportunities for Franklin and Meeder Funds
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Franklin and Meeder is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Meeder Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meeder Funds 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 Meeder Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meeder Funds has no effect on the direction of Franklin i.e., Franklin and Meeder Funds go up and down completely randomly.
Pair Corralation between Franklin and Meeder Funds
If you would invest 100.00 in Meeder Funds on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Meeder Funds or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Meeder Funds
Performance |
| Timeline |
| Franklin Government Money |
| Meeder Funds |
Franklin and Meeder Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Meeder Funds
The main advantage of trading using opposite Franklin and Meeder Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Meeder Funds 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 Meeder Funds will offset losses from the drop in Meeder Funds' long position.| Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard 500 Index | Franklin vs. Vanguard Total Stock | Franklin vs. Vanguard Total Stock |
| Meeder Funds vs. Vanguard Total Stock | Meeder Funds vs. Vanguard 500 Index | Meeder Funds vs. Vanguard Total Stock | Meeder Funds vs. Vanguard Total Stock |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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