Correlation Between Arrow Managed and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Arrow Managed and Franklin Growth 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 Arrow Managed and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Managed Futures and Franklin Growth Opportunities, you can compare the effects of market volatilities on Arrow Managed and Franklin Growth 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 Arrow Managed with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Managed and Franklin Growth.
Diversification Opportunities for Arrow Managed and Franklin Growth
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Franklin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Managed Futures and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo and Arrow Managed 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 Arrow Managed Futures are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Oppo has no effect on the direction of Arrow Managed i.e., Arrow Managed and Franklin Growth go up and down completely randomly.
Pair Corralation between Arrow Managed and Franklin Growth
Assuming the 90 days horizon Arrow Managed is expected to generate 63.82 times less return on investment than Franklin Growth. In addition to that, Arrow Managed is 1.09 times more volatile than Franklin Growth Opportunities. It trades about 0.0 of its total potential returns per unit of risk. Franklin Growth Opportunities is currently generating about 0.08 per unit of volatility. If you would invest 4,842 in Franklin Growth Opportunities on September 1, 2024 and sell it today you would earn a total of 1,502 from holding Franklin Growth Opportunities or generate 31.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Arrow Managed Futures vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Arrow Managed Futures |
| Franklin Growth Oppo |
Arrow Managed and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Managed and Franklin Growth
The main advantage of trading using opposite Arrow Managed and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Managed position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Arrow Managed vs. Arrow Dwa Tactical | Arrow Managed vs. Arrow Dwa Tactical | Arrow Managed vs. Vanguard 500 Index | Arrow Managed vs. Allspring Global Dividend |
| Franklin Growth vs. Kinetics Global Fund | Franklin Growth vs. Artisan Global Unconstrained | Franklin Growth vs. Pimco Global Multi Asset | Franklin Growth vs. Commonwealth Global 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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