Correlation Between TrueShares Technology and Franklin Exponential
Can any of the company-specific risk be diversified away by investing in both TrueShares Technology and Franklin Exponential 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 TrueShares Technology and Franklin Exponential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrueShares Technology AI and Franklin Exponential Data, you can compare the effects of market volatilities on TrueShares Technology and Franklin Exponential 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 TrueShares Technology with a short position of Franklin Exponential. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueShares Technology and Franklin Exponential.
Diversification Opportunities for TrueShares Technology and Franklin Exponential
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TrueShares and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Technology AI and Franklin Exponential Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Exponential Data and TrueShares Technology 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 TrueShares Technology AI are associated (or correlated) with Franklin Exponential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Exponential Data has no effect on the direction of TrueShares Technology i.e., TrueShares Technology and Franklin Exponential go up and down completely randomly.
Pair Corralation between TrueShares Technology and Franklin Exponential
Given the investment horizon of 90 days TrueShares Technology is expected to generate 1.05 times less return on investment than Franklin Exponential. In addition to that, TrueShares Technology is 1.37 times more volatile than Franklin Exponential Data. It trades about 0.05 of its total potential returns per unit of risk. Franklin Exponential Data is currently generating about 0.08 per unit of volatility. If you would invest 2,020 in Franklin Exponential Data on October 21, 2024 and sell it today you would earn a total of 563.00 from holding Franklin Exponential Data or generate 27.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrueShares Technology AI vs. Franklin Exponential Data
Performance |
| Timeline |
| TrueShares Technology |
| Franklin Exponential Data |
TrueShares Technology and Franklin Exponential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrueShares Technology and Franklin Exponential
The main advantage of trading using opposite TrueShares Technology and Franklin Exponential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueShares Technology position performs unexpectedly, Franklin Exponential 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 Exponential will offset losses from the drop in Franklin Exponential's long position.| TrueShares Technology vs. Franklin Disruptive Commerce | TrueShares Technology vs. Robo Global Artificial | TrueShares Technology vs. Innovator Loup Frontier | TrueShares Technology vs. Franklin Templeton ETF |
| Franklin Exponential vs. Franklin Disruptive Commerce | Franklin Exponential vs. Franklin Templeton ETF | Franklin Exponential vs. Esoterica NextG Economy | Franklin Exponential vs. TrueShares Technology AI |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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