Correlation Between SPTSX Dividend and Franklin Large
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Franklin Large Cap, you can compare the effects of market volatilities on SPTSX Dividend and Franklin Large 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 SPTSX Dividend with a short position of Franklin Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Franklin Large.
Diversification Opportunities for SPTSX Dividend and Franklin Large
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPTSX and Franklin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats and Franklin Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Large Cap and SPTSX Dividend 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 SPTSX Dividend Aristocrats are associated (or correlated) with Franklin Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Large Cap has no effect on the direction of SPTSX Dividend i.e., SPTSX Dividend and Franklin Large go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Franklin Large
Assuming the 90 days trading horizon SPTSX Dividend is expected to generate 2.81 times less return on investment than Franklin Large. But when comparing it to its historical volatility, SPTSX Dividend Aristocrats is 1.96 times less risky than Franklin Large. It trades about 0.15 of its potential returns per unit of risk. Franklin Large Cap is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,716 in Franklin Large Cap on August 28, 2024 and sell it today you would earn a total of 203.00 from holding Franklin Large Cap or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Franklin Large Cap
Performance |
| Timeline |
SPTSX Dividend and Franklin Large Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Franklin Large Cap
Pair trading matchups for Franklin Large
Pair Trading with SPTSX Dividend and Franklin Large
The main advantage of trading using opposite SPTSX Dividend and Franklin Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend position performs unexpectedly, Franklin Large 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 Franklin Large will offset losses from the drop in Franklin Large's long position.| SPTSX Dividend vs. High Liner Foods | SPTSX Dividend vs. TUT Fitness Group | SPTSX Dividend vs. MTY Food Group | SPTSX Dividend vs. UnitedHealth Group CDR |
| Franklin Large vs. Franklin Bissett Corporate | Franklin Large vs. FT AlphaDEX Industrials | Franklin Large vs. Dynamic Active Dividend |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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