Correlation Between Franklin Floating and KLP AksjeGlobal
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By analyzing existing cross correlation between Franklin Floating Rate and KLP AksjeGlobal Flerfaktor, you can compare the effects of market volatilities on Franklin Floating and KLP AksjeGlobal 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 Floating with a short position of KLP AksjeGlobal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and KLP AksjeGlobal.
Diversification Opportunities for Franklin Floating and KLP AksjeGlobal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and KLP is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and KLP AksjeGlobal Flerfaktor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeGlobal Fler and Franklin Floating 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 Floating Rate are associated (or correlated) with KLP AksjeGlobal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeGlobal Fler has no effect on the direction of Franklin Floating i.e., Franklin Floating and KLP AksjeGlobal go up and down completely randomly.
Pair Corralation between Franklin Floating and KLP AksjeGlobal
Assuming the 90 days trading horizon Franklin Floating is expected to generate 1.92 times less return on investment than KLP AksjeGlobal. But when comparing it to its historical volatility, Franklin Floating Rate is 3.97 times less risky than KLP AksjeGlobal. It trades about 0.27 of its potential returns per unit of risk. KLP AksjeGlobal Flerfaktor is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 186,795 in KLP AksjeGlobal Flerfaktor on September 2, 2024 and sell it today you would earn a total of 52,208 from holding KLP AksjeGlobal Flerfaktor or generate 27.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Floating Rate vs. KLP AksjeGlobal Flerfaktor
Performance |
| Timeline |
| Franklin Floating Rate |
| KLP AksjeGlobal Fler |
Franklin Floating and KLP AksjeGlobal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and KLP AksjeGlobal
The main advantage of trading using opposite Franklin Floating and KLP AksjeGlobal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, KLP AksjeGlobal 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 KLP AksjeGlobal will offset losses from the drop in KLP AksjeGlobal's long position.| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions |
| KLP AksjeGlobal vs. Storebrand Global Solutions | KLP AksjeGlobal vs. DNB Global Indeks | KLP AksjeGlobal vs. KLP AksjeNorge Indeks | KLP AksjeGlobal vs. Nordea 1 |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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