Correlation Between Locorr Market and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Franklin Strategic 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 Strategic 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 Strategic Mortgage, you can compare the effects of market volatilities on Locorr Market and Franklin Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Franklin Strategic.
Diversification Opportunities for Locorr Market and Franklin Strategic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Locorr and Franklin is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Franklin Strategic Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic has no effect on the direction of Locorr Market i.e., Locorr Market and Franklin Strategic go up and down completely randomly.
Pair Corralation between Locorr Market and Franklin Strategic
Assuming the 90 days horizon Locorr Market Trend is expected to generate 1.9 times more return on investment than Franklin Strategic. However, Locorr Market is 1.9 times more volatile than Franklin Strategic Mortgage. It trades about 0.06 of its potential returns per unit of risk. Franklin Strategic Mortgage is currently generating about -0.04 per unit of risk. If you would invest 1,012 in Locorr Market Trend on October 26, 2024 and sell it today you would earn a total of 24.00 from holding Locorr Market Trend or generate 2.37% 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 Strategic Mortgage
Performance |
| Timeline |
| Locorr Market Trend |
| Franklin Strategic |
Locorr Market and Franklin Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Franklin Strategic
The main advantage of trading using opposite Locorr Market and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.| Locorr Market vs. Growth Fund Of | Locorr Market vs. Credit Suisse Floating | Locorr Market vs. T Rowe Price | Locorr Market vs. T Rowe Price |
| Franklin Strategic vs. Qs Small Capitalization | Franklin Strategic vs. Arrow Dwa Balanced | Franklin Strategic vs. Dgi Investment Trust | Franklin Strategic vs. Rbb Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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