Correlation Between Franklin Floating and KLP AksjeNorge
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By analyzing existing cross correlation between Franklin Floating Rate and KLP AksjeNorge Indeks, you can compare the effects of market volatilities on Franklin Floating and KLP AksjeNorge 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 AksjeNorge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and KLP AksjeNorge.
Diversification Opportunities for Franklin Floating and KLP AksjeNorge
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and KLP is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and KLP AksjeNorge Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeNorge 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 AksjeNorge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeNorge Indeks has no effect on the direction of Franklin Floating i.e., Franklin Floating and KLP AksjeNorge go up and down completely randomly.
Pair Corralation between Franklin Floating and KLP AksjeNorge
Assuming the 90 days trading horizon Franklin Floating is expected to generate 2.31 times less return on investment than KLP AksjeNorge. But when comparing it to its historical volatility, Franklin Floating Rate is 7.46 times less risky than KLP AksjeNorge. It trades about 0.36 of its potential returns per unit of risk. KLP AksjeNorge Indeks is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 384,291 in KLP AksjeNorge Indeks on August 30, 2024 and sell it today you would earn a total of 6,155 from holding KLP AksjeNorge Indeks or generate 1.6% 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 AksjeNorge Indeks
Performance |
| Timeline |
| Franklin Floating Rate |
| KLP AksjeNorge Indeks |
Franklin Floating and KLP AksjeNorge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and KLP AksjeNorge
The main advantage of trading using opposite Franklin Floating and KLP AksjeNorge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, KLP AksjeNorge 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 AksjeNorge will offset losses from the drop in KLP AksjeNorge's long position.| Franklin Floating vs. KLP AksjeNorge Indeks | Franklin Floating vs. Storebrand Global Solutions | Franklin Floating vs. Nordea 1 | Franklin Floating vs. Nordnet One Forsiktig |
| KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge vs. Franklin Floating Rate | KLP AksjeNorge 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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