Correlation Between Franklin Floating and KLP Aksje
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By analyzing existing cross correlation between Franklin Floating Rate and KLP Aksje Fremvoksende, you can compare the effects of market volatilities on Franklin Floating and KLP Aksje 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 Aksje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and KLP Aksje.
Diversification Opportunities for Franklin Floating and KLP Aksje
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and KLP is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and KLP Aksje Fremvoksende in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP Aksje Fremvoksende 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 Aksje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP Aksje Fremvoksende has no effect on the direction of Franklin Floating i.e., Franklin Floating and KLP Aksje go up and down completely randomly.
Pair Corralation between Franklin Floating and KLP Aksje
Assuming the 90 days trading horizon Franklin Floating Rate is expected to generate 0.11 times more return on investment than KLP Aksje. However, Franklin Floating Rate is 9.38 times less risky than KLP Aksje. It trades about 0.51 of its potential returns per unit of risk. KLP Aksje Fremvoksende is currently generating about -0.05 per unit of risk. If you would invest 686.00 in Franklin Floating Rate on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Franklin Floating Rate or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Floating Rate vs. KLP Aksje Fremvoksende
Performance |
| Timeline |
| Franklin Floating Rate |
| KLP Aksje Fremvoksende |
Franklin Floating and KLP Aksje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and KLP Aksje
The main advantage of trading using opposite Franklin Floating and KLP Aksje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, KLP Aksje 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 Aksje will offset losses from the drop in KLP Aksje's long position.| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions | Franklin Floating vs. Nordea 1 |
| KLP Aksje vs. KLP AksjeGlobal Flerfaktor | KLP Aksje vs. KLP AksjeEuropa Indeks | KLP Aksje vs. KLP AksjeGlobal Indeks | KLP Aksje 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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