Correlation Between Sancus Lending and Franklin Libertyshares
Can any of the company-specific risk be diversified away by investing in both Sancus Lending and Franklin Libertyshares 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 Sancus Lending and Franklin Libertyshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Franklin Libertyshares ICAV, you can compare the effects of market volatilities on Sancus Lending and Franklin Libertyshares 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 Sancus Lending with a short position of Franklin Libertyshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Franklin Libertyshares.
Diversification Opportunities for Sancus Lending and Franklin Libertyshares
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sancus and Franklin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Franklin Libertyshares ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Libertyshares and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with Franklin Libertyshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Libertyshares has no effect on the direction of Sancus Lending i.e., Sancus Lending and Franklin Libertyshares go up and down completely randomly.
Pair Corralation between Sancus Lending and Franklin Libertyshares
Assuming the 90 days trading horizon Sancus Lending Group is expected to generate 11.49 times more return on investment than Franklin Libertyshares. However, Sancus Lending is 11.49 times more volatile than Franklin Libertyshares ICAV. It trades about 0.02 of its potential returns per unit of risk. Franklin Libertyshares ICAV is currently generating about 0.06 per unit of risk. If you would invest 73.00 in Sancus Lending Group on September 12, 2024 and sell it today you would lose (28.00) from holding Sancus Lending Group or give up 38.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sancus Lending Group vs. Franklin Libertyshares ICAV
Performance |
| Timeline |
| Sancus Lending Group |
| Franklin Libertyshares |
Sancus Lending and Franklin Libertyshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Franklin Libertyshares
The main advantage of trading using opposite Sancus Lending and Franklin Libertyshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending position performs unexpectedly, Franklin Libertyshares 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 Franklin Libertyshares will offset losses from the drop in Franklin Libertyshares' long position.| Sancus Lending vs. Lowland Investment Co | Sancus Lending vs. Westlake Chemical Corp | Sancus Lending vs. National Bank of | Sancus Lending vs. Ally Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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