Correlation Between Bny Mellon and Franklin Real
Can any of the company-specific risk be diversified away by investing in both Bny Mellon and Franklin Real 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 Bny Mellon and Franklin Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bny Mellon Municipal and Franklin Real Estate, you can compare the effects of market volatilities on Bny Mellon and Franklin Real 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 Bny Mellon with a short position of Franklin Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bny Mellon and Franklin Real.
Diversification Opportunities for Bny Mellon and Franklin Real
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bny and Franklin is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Municipal and Franklin Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Real Estate and Bny Mellon 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 Bny Mellon Municipal are associated (or correlated) with Franklin Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Real Estate has no effect on the direction of Bny Mellon i.e., Bny Mellon and Franklin Real go up and down completely randomly.
Pair Corralation between Bny Mellon and Franklin Real
Assuming the 90 days horizon Bny Mellon Municipal is expected to generate 0.31 times more return on investment than Franklin Real. However, Bny Mellon Municipal is 3.25 times less risky than Franklin Real. It trades about 0.11 of its potential returns per unit of risk. Franklin Real Estate is currently generating about 0.01 per unit of risk. If you would invest 1,249 in Bny Mellon Municipal on August 26, 2024 and sell it today you would earn a total of 9.00 from holding Bny Mellon Municipal or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bny Mellon Municipal vs. Franklin Real Estate
Performance |
| Timeline |
| Bny Mellon Municipal |
| Franklin Real Estate |
Bny Mellon and Franklin Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bny Mellon and Franklin Real
The main advantage of trading using opposite Bny Mellon and Franklin Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon position performs unexpectedly, Franklin Real 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 Real will offset losses from the drop in Franklin Real's long position.| Bny Mellon vs. Franklin Real Estate | Bny Mellon vs. Amg Managers Centersquare | Bny Mellon vs. Dunham Real Estate | Bny Mellon vs. Prudential Real Estate |
| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |