Correlation Between Franklin and Defensive Market
Can any of the company-specific risk be diversified away by investing in both Franklin and Defensive Market 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 Defensive Market 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 Defensive Market Strategies, you can compare the effects of market volatilities on Franklin and Defensive Market 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 Defensive Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Defensive Market.
Diversification Opportunities for Franklin and Defensive Market
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Defensive is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Defensive Market Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Defensive Market Str 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 Defensive Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Defensive Market Str has no effect on the direction of Franklin i.e., Franklin and Defensive Market go up and down completely randomly.
Pair Corralation between Franklin and Defensive Market
If you would invest 1,175 in Defensive Market Strategies on November 30, 2024 and sell it today you would earn a total of 16.00 from holding Defensive Market Strategies or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Franklin Government Money vs. Defensive Market Strategies
Performance |
| Timeline |
| Franklin Government Money |
| Defensive Market Str |
Franklin and Defensive Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Defensive Market
The main advantage of trading using opposite Franklin and Defensive Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Defensive Market 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 Defensive Market will offset losses from the drop in Defensive Market's long position.| Franklin vs. Collegeadvantage 529 Savings | Franklin vs. Schwab Government Money | Franklin vs. Voya Government Money | Franklin vs. Prudential Emerging Markets |
| Defensive Market vs. Transamerica Asset Allocation | Defensive Market vs. Knights Of Umbus | Defensive Market vs. Dodge Cox Stock | Defensive Market vs. Enhanced Large Pany |
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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