Correlation Between Franklin Federal and Ab All
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Ab All 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 Federal and Ab All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Limited Term and Ab All Market, you can compare the effects of market volatilities on Franklin Federal and Ab All 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 Federal with a short position of Ab All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Ab All.
Diversification Opportunities for Franklin Federal and Ab All
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and MRKCX is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Ab All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All Market and Franklin Federal 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 Federal Limited Term are associated (or correlated) with Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All Market has no effect on the direction of Franklin Federal i.e., Franklin Federal and Ab All go up and down completely randomly.
Pair Corralation between Franklin Federal and Ab All
If you would invest 1,029 in Franklin Federal Limited Term on September 13, 2024 and sell it today you would earn a total of 6.00 from holding Franklin Federal Limited Term or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Ab All Market
Performance |
| Timeline |
| Franklin Federal Lim |
| Ab All Market |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Federal and Ab All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Ab All
The main advantage of trading using opposite Franklin Federal and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Ab All 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 Ab All will offset losses from the drop in Ab All's long position.| Franklin Federal vs. Franklin Mutual Beacon | Franklin Federal vs. Templeton Developing Markets | Franklin Federal vs. Franklin Mutual Global | Franklin Federal vs. Franklin Mutual Global |
| Ab All vs. Dunham Real Estate | Ab All vs. Short Real Estate | Ab All vs. Vy Clarion Real | Ab All vs. Goldman Sachs Real |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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