Correlation Between Franklin Floating and DNB Global
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By analyzing existing cross correlation between Franklin Floating Rate and DNB Global Indeks, you can compare the effects of market volatilities on Franklin Floating and DNB Global 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 DNB Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and DNB Global.
Diversification Opportunities for Franklin Floating and DNB Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and DNB is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and DNB Global Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Global 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 DNB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Global Indeks has no effect on the direction of Franklin Floating i.e., Franklin Floating and DNB Global go up and down completely randomly.
Pair Corralation between Franklin Floating and DNB Global
Assuming the 90 days trading horizon Franklin Floating is expected to generate 4.23 times less return on investment than DNB Global. But when comparing it to its historical volatility, Franklin Floating Rate is 11.46 times less risky than DNB Global. It trades about 0.65 of its potential returns per unit of risk. DNB Global Indeks is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 72,960 in DNB Global Indeks on September 4, 2024 and sell it today you would earn a total of 3,170 from holding DNB Global Indeks or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Franklin Floating Rate vs. DNB Global Indeks
Performance |
| Timeline |
| Franklin Floating Rate |
| DNB Global Indeks |
Franklin Floating and DNB Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Floating and DNB Global
The main advantage of trading using opposite Franklin Floating and DNB Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, DNB Global 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 DNB Global will offset losses from the drop in DNB Global's long position.| Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Dalata Hotel Group | Franklin Floating vs. Uniphar Group PLC |
| DNB Global vs. DNB Norge Selektiv | DNB Global vs. KLP AksjeNorge Indeks | DNB Global vs. Storebrand Global Solutions | DNB Global vs. Nordea 1 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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