Correlation Between MAYBANK EMERGING and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both MAYBANK EMERGING and Franklin FTSE 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 MAYBANK EMERGING and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAYBANK EMERGING ETF and Franklin FTSE Asia, you can compare the effects of market volatilities on MAYBANK EMERGING and Franklin FTSE 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 MAYBANK EMERGING with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAYBANK EMERGING and Franklin FTSE.
Diversification Opportunities for MAYBANK EMERGING and Franklin FTSE
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MAYBANK and Franklin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding MAYBANK EMERGING ETF and Franklin FTSE Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Asia and MAYBANK EMERGING 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 MAYBANK EMERGING ETF are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Asia has no effect on the direction of MAYBANK EMERGING i.e., MAYBANK EMERGING and Franklin FTSE go up and down completely randomly.
Pair Corralation between MAYBANK EMERGING and Franklin FTSE
If you would invest 0.00 in MAYBANK EMERGING ETF on August 28, 2024 and sell it today you would earn a total of 0.00 from holding MAYBANK EMERGING ETF or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
MAYBANK EMERGING ETF vs. Franklin FTSE Asia
Performance |
| Timeline |
| MAYBANK EMERGING ETF |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Franklin FTSE Asia |
MAYBANK EMERGING and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAYBANK EMERGING and Franklin FTSE
The main advantage of trading using opposite MAYBANK EMERGING and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAYBANK EMERGING position performs unexpectedly, Franklin FTSE 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 FTSE will offset losses from the drop in Franklin FTSE's long position.| MAYBANK EMERGING vs. RENN Fund | MAYBANK EMERGING vs. Sunlands Technology Group | MAYBANK EMERGING vs. ECGI Holdings | MAYBANK EMERGING vs. Cohen Steers Tax Advantaged |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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