Correlation Between Franklin Floating and Nordnet One
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By analyzing existing cross correlation between Franklin Floating Rate and Nordnet One Forsiktig, you can compare the effects of market volatilities on Franklin Floating and Nordnet One 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 Nordnet One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and Nordnet One.
Diversification Opportunities for Franklin Floating and Nordnet One
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Nordnet is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and Nordnet One Forsiktig in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordnet One Forsiktig 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 Nordnet One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordnet One Forsiktig has no effect on the direction of Franklin Floating i.e., Franklin Floating and Nordnet One go up and down completely randomly.
Pair Corralation between Franklin Floating and Nordnet One
Assuming the 90 days trading horizon Franklin Floating is expected to generate 1.02 times less return on investment than Nordnet One. But when comparing it to its historical volatility, Franklin Floating Rate is 2.33 times less risky than Nordnet One. It trades about 0.59 of its potential returns per unit of risk. Nordnet One Forsiktig is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 12,342 in Nordnet One Forsiktig on September 2, 2024 and sell it today you would earn a total of 139.00 from holding Nordnet One Forsiktig or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Franklin Floating Rate vs. Nordnet One Forsiktig
Performance |
| Timeline |
| Franklin Floating Rate |
| Nordnet One Forsiktig |
Franklin Floating and Nordnet One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and Nordnet One
The main advantage of trading using opposite Franklin Floating and Nordnet One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, Nordnet One 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 Nordnet One will offset losses from the drop in Nordnet One'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 |
| Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Franklin Floating Rate | Nordnet One vs. Dalata Hotel Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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