Correlation Between Franklin and Rational Special
Can any of the company-specific risk be diversified away by investing in both Franklin and Rational Special 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 Rational Special 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 Rational Special Situations, you can compare the effects of market volatilities on Franklin and Rational Special 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 Rational Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Rational Special.
Diversification Opportunities for Franklin and Rational Special
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Rational is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Rational Special Situations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Special Sit 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 Rational Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Special Sit has no effect on the direction of Franklin i.e., Franklin and Rational Special go up and down completely randomly.
Pair Corralation between Franklin and Rational Special
If you would invest 1,806 in Rational Special Situations on November 29, 2024 and sell it today you would earn a total of 17.00 from holding Rational Special Situations or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Government Money vs. Rational Special Situations
Performance |
| Timeline |
| Franklin Government Money |
| Rational Special Sit |
Franklin and Rational Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Rational Special
The main advantage of trading using opposite Franklin and Rational Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Rational Special 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 Rational Special will offset losses from the drop in Rational Special's long position.| Franklin vs. Pace Municipal Fixed | Franklin vs. Aig Government Money | Franklin vs. Alpine Ultra Short | Franklin vs. Morningstar Municipal Bond |
| Rational Special vs. Sprott Gold Equity | Rational Special vs. Invesco Gold Special | Rational Special vs. The Gold Bullion | Rational Special vs. Europac Gold Fund |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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