Correlation Between Franklin Utilities and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Franklin Utilities and Tiaa Cref 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 Utilities and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Utilities Fund and Tiaa Cref Smallmid Cap Equity, you can compare the effects of market volatilities on Franklin Utilities and Tiaa Cref 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 Utilities with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Utilities and Tiaa Cref.
Diversification Opportunities for Franklin Utilities and Tiaa Cref
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Tiaa is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Utilities Fund and Tiaa Cref Smallmid Cap Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Smallmid and Franklin Utilities 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 Utilities Fund are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Smallmid has no effect on the direction of Franklin Utilities i.e., Franklin Utilities and Tiaa Cref go up and down completely randomly.
Pair Corralation between Franklin Utilities and Tiaa Cref
Assuming the 90 days horizon Franklin Utilities Fund is expected to generate 0.34 times more return on investment than Tiaa Cref. However, Franklin Utilities Fund is 2.95 times less risky than Tiaa Cref. It trades about -0.07 of its potential returns per unit of risk. Tiaa Cref Smallmid Cap Equity is currently generating about -0.2 per unit of risk. If you would invest 2,477 in Franklin Utilities Fund on September 12, 2024 and sell it today you would lose (32.00) from holding Franklin Utilities Fund or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Utilities Fund vs. Tiaa Cref Smallmid Cap Equity
Performance |
| Timeline |
| Franklin Utilities |
| Tiaa Cref Smallmid |
Franklin Utilities and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Utilities and Tiaa Cref
The main advantage of trading using opposite Franklin Utilities and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Utilities position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Franklin Utilities vs. Pace Large Value | Franklin Utilities vs. Large Cap Growth Profund | Franklin Utilities vs. Transamerica Large Cap | Franklin Utilities vs. Touchstone Large Cap |
| Tiaa Cref vs. Lgm Risk Managed | Tiaa Cref vs. Calvert High Yield | Tiaa Cref vs. Us High Relative | Tiaa Cref vs. Fa 529 Aggressive |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |