Correlation Between Janus Global and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Janus Global and Ftfa Franklin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Janus Global and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Global Technology and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Janus Global and Ftfa Franklin 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 Janus Global with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Global and Ftfa Franklin.
Diversification Opportunities for Janus Global and Ftfa Franklin
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Janus and Ftfa is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Janus Global Technology and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Janus Global 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 Janus Global Technology are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Janus Global i.e., Janus Global and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Janus Global and Ftfa Franklin
Assuming the 90 days horizon Janus Global Technology is expected to under-perform the Ftfa Franklin. In addition to that, Janus Global is 3.81 times more volatile than Ftfa Franklin Templeton Growth. It trades about -0.19 of its total potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about -0.07 per unit of volatility. If you would invest 2,092 in Ftfa Franklin Templeton Growth on September 22, 2024 and sell it today you would lose (20.00) from holding Ftfa Franklin Templeton Growth or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Global Technology vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Janus Global Technology |
| Ftfa Franklin Templeton |
Janus Global and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Global and Ftfa Franklin
The main advantage of trading using opposite Janus Global and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Global position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.| Janus Global vs. Janus Global Life | Janus Global vs. Janus Research Fund | Janus Global vs. Janus Enterprise Fund | Janus Global vs. Janus Trarian Fund |
| Ftfa Franklin vs. Icon Natural Resources | Ftfa Franklin vs. Adams Natural Resources | Ftfa Franklin vs. Invesco Energy Fund | Ftfa Franklin vs. Oil Gas Ultrasector |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |