Correlation Between Franklin Government and Tfa Alphagen
Can any of the company-specific risk be diversified away by investing in both Franklin Government and Tfa Alphagen 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 Tfa Alphagen 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 Tfa Alphagen Growth, you can compare the effects of market volatilities on Franklin Government and Tfa Alphagen 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 Tfa Alphagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and Tfa Alphagen.
Diversification Opportunities for Franklin Government and Tfa Alphagen
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Tfa is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Tfa Alphagen Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tfa Alphagen Growth 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 Tfa Alphagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tfa Alphagen Growth has no effect on the direction of Franklin Government i.e., Franklin Government and Tfa Alphagen go up and down completely randomly.
Pair Corralation between Franklin Government and Tfa Alphagen
If you would invest 100.00 in Franklin Government Money on September 20, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Tfa Alphagen Growth
Performance |
| Timeline |
| Franklin Government Money |
| Tfa Alphagen Growth |
Franklin Government and Tfa Alphagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and Tfa Alphagen
The main advantage of trading using opposite Franklin Government and Tfa Alphagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government position performs unexpectedly, Tfa Alphagen 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 Tfa Alphagen will offset losses from the drop in Tfa Alphagen's long position.| Franklin Government vs. Oklahoma Municipal Fund | Franklin Government vs. Ab Impact Municipal | Franklin Government vs. Franklin High Yield | Franklin Government vs. Blrc Sgy Mnp |
| Tfa Alphagen vs. Blackrock Exchange Portfolio | Tfa Alphagen vs. Franklin Government Money | Tfa Alphagen vs. Hewitt Money Market | Tfa Alphagen vs. Ab Government Exchange |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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