Correlation Between Franklin Federal and Ultrabull Profund
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Ultrabull Profund 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 Ultrabull Profund 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 Ultrabull Profund Ultrabull, you can compare the effects of market volatilities on Franklin Federal and Ultrabull Profund 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 Ultrabull Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Ultrabull Profund.
Diversification Opportunities for Franklin Federal and Ultrabull Profund
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Ultrabull is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Ultrabull Profund Ultrabull in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultrabull Profund 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 Ultrabull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultrabull Profund has no effect on the direction of Franklin Federal i.e., Franklin Federal and Ultrabull Profund go up and down completely randomly.
Pair Corralation between Franklin Federal and Ultrabull Profund
Assuming the 90 days horizon Franklin Federal Limited Term is expected to generate 0.09 times more return on investment than Ultrabull Profund. However, Franklin Federal Limited Term is 11.66 times less risky than Ultrabull Profund. It trades about 0.24 of its potential returns per unit of risk. Ultrabull Profund Ultrabull is currently generating about -0.08 per unit of risk. If you would invest 1,027 in Franklin Federal Limited Term on November 28, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Ultrabull Profund Ultrabull
Performance |
| Timeline |
| Franklin Federal Lim |
| Ultrabull Profund |
Franklin Federal and Ultrabull Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Ultrabull Profund
The main advantage of trading using opposite Franklin Federal and Ultrabull Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Ultrabull Profund 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 Ultrabull Profund will offset losses from the drop in Ultrabull Profund's long position.| Franklin Federal vs. Ab Small Cap | Franklin Federal vs. Glg Intl Small | Franklin Federal vs. Champlain Small | Franklin Federal vs. Nuveen Small Cap |
| Ultrabull Profund vs. Ab Bond Inflation | Ultrabull Profund vs. Bbh Intermediate Municipal | Ultrabull Profund vs. Morningstar Defensive Bond | Ultrabull Profund vs. Intermediate Bond 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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