Correlation Between Locorr Market and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Franklin Emerging 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 Locorr Market and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Franklin Emerging Market, you can compare the effects of market volatilities on Locorr Market and Franklin Emerging 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 Locorr Market with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Franklin Emerging.
Diversification Opportunities for Locorr Market and Franklin Emerging
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Locorr and Franklin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Locorr Market 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 Locorr Market Trend are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Locorr Market i.e., Locorr Market and Franklin Emerging go up and down completely randomly.
Pair Corralation between Locorr Market and Franklin Emerging
Assuming the 90 days horizon Locorr Market Trend is expected to under-perform the Franklin Emerging. In addition to that, Locorr Market is 6.15 times more volatile than Franklin Emerging Market. It trades about -0.12 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.24 per unit of volatility. If you would invest 1,208 in Franklin Emerging Market on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Franklin Emerging Market or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Market Trend vs. Franklin Emerging Market
Performance |
| Timeline |
| Locorr Market Trend |
| Franklin Emerging Market |
Locorr Market and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Franklin Emerging
The main advantage of trading using opposite Locorr Market and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Franklin Emerging 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 Emerging will offset losses from the drop in Franklin Emerging's long position.| Locorr Market vs. Ab Government Exchange | Locorr Market vs. Hsbc Treasury Money | Locorr Market vs. The Gabelli Money | Locorr Market vs. Franklin Government Money |
| Franklin Emerging vs. Health Biotchnology Portfolio | Franklin Emerging vs. Deutsche Health And | Franklin Emerging vs. Baron Health Care | Franklin Emerging vs. Prudential Health Sciences |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |