Correlation Between Franklin Floating and Great Western
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By analyzing existing cross correlation between Franklin Floating Rate and Great Western Mining, you can compare the effects of market volatilities on Franklin Floating and Great Western 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 Great Western. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and Great Western.
Diversification Opportunities for Franklin Floating and Great Western
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Great is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and Great Western Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Western Mining 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 Great Western. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Western Mining has no effect on the direction of Franklin Floating i.e., Franklin Floating and Great Western go up and down completely randomly.
Pair Corralation between Franklin Floating and Great Western
Assuming the 90 days trading horizon Franklin Floating is expected to generate 201.72 times less return on investment than Great Western. But when comparing it to its historical volatility, Franklin Floating Rate is 245.57 times less risky than Great Western. It trades about 0.36 of its potential returns per unit of risk. Great Western Mining is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Great Western Mining on August 30, 2024 and sell it today you would earn a total of 0.10 from holding Great Western Mining or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Floating Rate vs. Great Western Mining
Performance |
| Timeline |
| Franklin Floating Rate |
| Great Western Mining |
Franklin Floating and Great Western Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and Great Western
The main advantage of trading using opposite Franklin Floating and Great Western positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, Great Western 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 Great Western will offset losses from the drop in Great Western'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 |
| Great Western vs. Bank of Ireland | Great Western vs. Ryanair Holdings plc | Great Western vs. Donegal Investment Group | Great Western 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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