Correlation Between Franklin Templeton and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Blackrock Floating 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 Templeton and Blackrock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton Limited and Blackrock Floating Rate, you can compare the effects of market volatilities on Franklin Templeton and Blackrock Floating 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 Templeton with a short position of Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Blackrock Floating.
Diversification Opportunities for Franklin Templeton and Blackrock Floating
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Blackrock is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Limited and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate and Franklin Templeton 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 Templeton Limited are associated (or correlated) with Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Blackrock Floating go up and down completely randomly.
Pair Corralation between Franklin Templeton and Blackrock Floating
Considering the 90-day investment horizon Franklin Templeton is expected to generate 1.16 times less return on investment than Blackrock Floating. But when comparing it to its historical volatility, Franklin Templeton Limited is 1.25 times less risky than Blackrock Floating. It trades about 0.14 of its potential returns per unit of risk. Blackrock Floating Rate is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,235 in Blackrock Floating Rate on August 31, 2024 and sell it today you would earn a total of 163.00 from holding Blackrock Floating Rate or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton Limited vs. Blackrock Floating Rate
Performance |
| Timeline |
| Franklin Templeton |
| Blackrock Floating Rate |
Franklin Templeton and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Blackrock Floating
The main advantage of trading using opposite Franklin Templeton and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Blackrock Floating 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 Blackrock Floating will offset losses from the drop in Blackrock Floating's long position.| Franklin Templeton vs. MFS Investment Grade | Franklin Templeton vs. Invesco High Income | Franklin Templeton vs. Eaton Vance National | Franklin Templeton vs. Rivernorth Opportunistic Municipalome |
| Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. Eaton Vance Senior | Blackrock Floating vs. Nuveen Floating Rate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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