Correlation Between Fidelity Sai and Franklin Efolio
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Franklin Efolio 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 Fidelity Sai and Franklin Efolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Franklin Efolio Allocation, you can compare the effects of market volatilities on Fidelity Sai and Franklin Efolio 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 Fidelity Sai with a short position of Franklin Efolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Franklin Efolio.
Diversification Opportunities for Fidelity Sai and Franklin Efolio
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Franklin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Franklin Efolio Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Efolio Allo and Fidelity Sai 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 Fidelity Sai Convertible are associated (or correlated) with Franklin Efolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Efolio Allo has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Franklin Efolio go up and down completely randomly.
Pair Corralation between Fidelity Sai and Franklin Efolio
Assuming the 90 days horizon Fidelity Sai is expected to generate 6.36 times less return on investment than Franklin Efolio. But when comparing it to its historical volatility, Fidelity Sai Convertible is 10.66 times less risky than Franklin Efolio. It trades about 0.17 of its potential returns per unit of risk. Franklin Efolio Allocation is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,329 in Franklin Efolio Allocation on October 20, 2024 and sell it today you would earn a total of 41.00 from holding Franklin Efolio Allocation or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Franklin Efolio Allocation
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Franklin Efolio Allo |
Fidelity Sai and Franklin Efolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Franklin Efolio
The main advantage of trading using opposite Fidelity Sai and Franklin Efolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Franklin Efolio 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 Franklin Efolio will offset losses from the drop in Franklin Efolio's long position.| Fidelity Sai vs. Blackrock Large Cap | Fidelity Sai vs. Fundamental Large Cap | Fidelity Sai vs. Profunds Large Cap Growth | Fidelity Sai vs. Smead Value Fund |
| Franklin Efolio vs. Franklin Mutual Beacon | Franklin Efolio vs. Templeton Developing Markets | Franklin Efolio vs. Franklin Mutual Global | Franklin Efolio vs. Franklin Mutual Global |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |