Correlation Between Lkcm Small and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Lkcm Small and Franklin Adjustable 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 Lkcm Small and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lkcm Small Cap and Franklin Adjustable Government, you can compare the effects of market volatilities on Lkcm Small and Franklin Adjustable 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 Lkcm Small with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lkcm Small and Franklin Adjustable.
Diversification Opportunities for Lkcm Small and Franklin Adjustable
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between LKCM and Franklin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lkcm Small Cap and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Lkcm Small 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 Lkcm Small Cap are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Lkcm Small i.e., Lkcm Small and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Lkcm Small and Franklin Adjustable
Assuming the 90 days horizon Lkcm Small Cap is expected to under-perform the Franklin Adjustable. In addition to that, Lkcm Small is 12.48 times more volatile than Franklin Adjustable Government. It trades about -0.17 of its total potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.14 per unit of volatility. If you would invest 747.00 in Franklin Adjustable Government on October 23, 2024 and sell it today you would earn a total of 5.00 from holding Franklin Adjustable Government or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lkcm Small Cap vs. Franklin Adjustable Government
Performance |
| Timeline |
| Lkcm Small Cap |
| Franklin Adjustable |
Lkcm Small and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lkcm Small and Franklin Adjustable
The main advantage of trading using opposite Lkcm Small and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lkcm Small position performs unexpectedly, Franklin Adjustable 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 Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Lkcm Small vs. The Gold Bullion | Lkcm Small vs. Sprott Gold Equity | Lkcm Small vs. Vy Goldman Sachs | Lkcm Small vs. Goldman Sachs Multi Manager |
| Franklin Adjustable vs. Lkcm Small Cap | Franklin Adjustable vs. Franklin Small Cap | Franklin Adjustable vs. Kinetics Small Cap | Franklin Adjustable vs. Smallcap Fund Fka |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |