Correlation Between Blrc Sgy and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Franklin Government 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 Blrc Sgy and Franklin Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Franklin Government Money, you can compare the effects of market volatilities on Blrc Sgy and Franklin Government 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 Blrc Sgy with a short position of Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Franklin Government.
Diversification Opportunities for Blrc Sgy and Franklin Government
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blrc and Franklin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Blrc Sgy 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 Blrc Sgy Mnp are associated (or correlated) with Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Franklin Government go up and down completely randomly.
Pair Corralation between Blrc Sgy and Franklin Government
Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 2.16 times more return on investment than Franklin Government. However, Blrc Sgy is 2.16 times more volatile than Franklin Government Money. It trades about 0.06 of its potential returns per unit of risk. Franklin Government Money is currently generating about 0.12 per unit of risk. If you would invest 975.00 in Blrc Sgy Mnp on September 20, 2024 and sell it today you would earn a total of 83.00 from holding Blrc Sgy Mnp or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Franklin Government Money
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Franklin Government Money |
Blrc Sgy and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Franklin Government
The main advantage of trading using opposite Blrc Sgy and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Franklin Government 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 Government will offset losses from the drop in Franklin Government's long position.| Blrc Sgy vs. Blackrock California Municipal | Blrc Sgy vs. Blackrock Balanced Capital | Blrc Sgy vs. Blackrock Eurofund Class | Blrc Sgy vs. Blackrock Funds |
| Franklin Government vs. Oklahoma Municipal Fund | Franklin Government vs. Ab Impact Municipal | Franklin Government vs. Franklin High Yield | Franklin Government vs. Blrc Sgy Mnp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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