Correlation Between Franklin Lifesmart and Rising Us
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart and Rising Us 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 Lifesmart and Rising Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Lifesmart Retirement and Rising Dollar Profund, you can compare the effects of market volatilities on Franklin Lifesmart and Rising Us 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 Lifesmart with a short position of Rising Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Rising Us.
Diversification Opportunities for Franklin Lifesmart and Rising Us
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Rising is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart Retirement and Rising Dollar Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Dollar Profund and Franklin Lifesmart 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 Lifesmart Retirement are associated (or correlated) with Rising Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Dollar Profund has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Rising Us go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Rising Us
Assuming the 90 days horizon Franklin Lifesmart Retirement is expected to generate 0.69 times more return on investment than Rising Us. However, Franklin Lifesmart Retirement is 1.45 times less risky than Rising Us. It trades about 0.1 of its potential returns per unit of risk. Rising Dollar Profund is currently generating about -0.13 per unit of risk. If you would invest 1,045 in Franklin Lifesmart Retirement on November 29, 2024 and sell it today you would earn a total of 6.00 from holding Franklin Lifesmart Retirement or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Lifesmart Retirement vs. Rising Dollar Profund
Performance |
| Timeline |
| Franklin Lifesmart |
| Rising Dollar Profund |
Franklin Lifesmart and Rising Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Lifesmart and Rising Us
The main advantage of trading using opposite Franklin Lifesmart and Rising Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart position performs unexpectedly, Rising Us 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 Rising Us will offset losses from the drop in Rising Us' long position.| Franklin Lifesmart vs. Federated Government Income | Franklin Lifesmart vs. Bbh Partner Fund | Franklin Lifesmart vs. Dreyfusstandish Global Fixed | Franklin Lifesmart vs. Ms Global Fixed |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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