Correlation Between Franklin Templeton and Oxford Square
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Oxford Square 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 Oxford Square 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 Oxford Square Capital, you can compare the effects of market volatilities on Franklin Templeton and Oxford Square 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 Oxford Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Oxford Square.
Diversification Opportunities for Franklin Templeton and Oxford Square
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Oxford is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Limited and Oxford Square Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Square Capital 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 Oxford Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Square Capital has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Oxford Square go up and down completely randomly.
Pair Corralation between Franklin Templeton and Oxford Square
Considering the 90-day investment horizon Franklin Templeton Limited is expected to generate 0.84 times more return on investment than Oxford Square. However, Franklin Templeton Limited is 1.19 times less risky than Oxford Square. It trades about 0.24 of its potential returns per unit of risk. Oxford Square Capital is currently generating about -0.08 per unit of risk. If you would invest 641.00 in Franklin Templeton Limited on August 30, 2024 and sell it today you would earn a total of 17.00 from holding Franklin Templeton Limited or generate 2.65% 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. Oxford Square Capital
Performance |
| Timeline |
| Franklin Templeton |
| Oxford Square Capital |
Franklin Templeton and Oxford Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Oxford Square
The main advantage of trading using opposite Franklin Templeton and Oxford Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Oxford Square 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 Oxford Square will offset losses from the drop in Oxford Square'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 |
| Oxford Square vs. Brightsphere Investment Group | Oxford Square vs. Franklin Templeton Limited | Oxford Square vs. Blackrock Muni Intermediate | Oxford Square vs. Munivest Fund |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |