Correlation Between Franklin FTSE and Secure Property
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and Secure Property 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 FTSE and Secure Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Brazil and Secure Property Development, you can compare the effects of market volatilities on Franklin FTSE and Secure Property 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 FTSE with a short position of Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and Secure Property.
Diversification Opportunities for Franklin FTSE and Secure Property
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Secure is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Brazil and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve and Franklin FTSE 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 FTSE Brazil are associated (or correlated) with Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and Secure Property go up and down completely randomly.
Pair Corralation between Franklin FTSE and Secure Property
Assuming the 90 days trading horizon Franklin FTSE Brazil is expected to generate 0.98 times more return on investment than Secure Property. However, Franklin FTSE Brazil is 1.02 times less risky than Secure Property. It trades about 0.01 of its potential returns per unit of risk. Secure Property Development is currently generating about -0.03 per unit of risk. If you would invest 1,663 in Franklin FTSE Brazil on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Franklin FTSE Brazil or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin FTSE Brazil vs. Secure Property Development
Performance |
| Timeline |
| Franklin FTSE Brazil |
| Secure Property Deve |
Franklin FTSE and Secure Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and Secure Property
The main advantage of trading using opposite Franklin FTSE and Secure Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, Secure Property 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 Secure Property will offset losses from the drop in Secure Property's long position.| Franklin FTSE vs. Franklin LibertyQ Global | Franklin FTSE vs. Franklin Libertyshares ICAV | Franklin FTSE vs. Franklin FTSE Asia | Franklin FTSE vs. Franklin FTSE Brazil |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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