Correlation Between Franklin Floating and KLP AksjeEuropa
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By analyzing existing cross correlation between Franklin Floating Rate and KLP AksjeEuropa Indeks, you can compare the effects of market volatilities on Franklin Floating and KLP AksjeEuropa 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 AksjeEuropa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and KLP AksjeEuropa.
Diversification Opportunities for Franklin Floating and KLP AksjeEuropa
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and KLP is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and KLP AksjeEuropa Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeEuropa Indeks 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 AksjeEuropa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeEuropa Indeks has no effect on the direction of Franklin Floating i.e., Franklin Floating and KLP AksjeEuropa go up and down completely randomly.
Pair Corralation between Franklin Floating and KLP AksjeEuropa
Assuming the 90 days trading horizon Franklin Floating Rate is expected to generate 0.15 times more return on investment than KLP AksjeEuropa. However, Franklin Floating Rate is 6.75 times less risky than KLP AksjeEuropa. It trades about 0.59 of its potential returns per unit of risk. KLP AksjeEuropa Indeks is currently generating about -0.09 per unit of risk. If you would invest 686.00 in Franklin Floating Rate on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Floating Rate or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Floating Rate vs. KLP AksjeEuropa Indeks
Performance |
| Timeline |
| Franklin Floating Rate |
| KLP AksjeEuropa Indeks |
Franklin Floating and KLP AksjeEuropa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and KLP AksjeEuropa
The main advantage of trading using opposite Franklin Floating and KLP AksjeEuropa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, KLP AksjeEuropa 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 AksjeEuropa will offset losses from the drop in KLP AksjeEuropa'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 AksjeEuropa vs. KLP AksjeNorge Indeks | KLP AksjeEuropa vs. KLP Aksje Fremvoksende | KLP AksjeEuropa vs. KLP AksjeGlobal Indeks | KLP AksjeEuropa vs. KLP AksjeUSA Indeks |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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