Correlation Between T Rex and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both T Rex and Franklin Liberty 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 T Rex and Franklin Liberty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and Franklin Liberty Investment, you can compare the effects of market volatilities on T Rex and Franklin Liberty 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 T Rex with a short position of Franklin Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and Franklin Liberty.
Diversification Opportunities for T Rex and Franklin Liberty
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NVDX and Franklin is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and Franklin Liberty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Inv and T Rex 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 T Rex 2X Long are associated (or correlated) with Franklin Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Inv has no effect on the direction of T Rex i.e., T Rex and Franklin Liberty go up and down completely randomly.
Pair Corralation between T Rex and Franklin Liberty
Given the investment horizon of 90 days T Rex 2X Long is expected to generate 14.6 times more return on investment than Franklin Liberty. However, T Rex is 14.6 times more volatile than Franklin Liberty Investment. It trades about 0.13 of its potential returns per unit of risk. Franklin Liberty Investment is currently generating about 0.05 per unit of risk. If you would invest 249.00 in T Rex 2X Long on September 14, 2024 and sell it today you would earn a total of 1,371 from holding T Rex 2X Long or generate 550.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 58.79% |
| Values | Daily Returns |
T Rex 2X Long vs. Franklin Liberty Investment
Performance |
| Timeline |
| T Rex 2X |
| Franklin Liberty Inv |
T Rex and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and Franklin Liberty
The main advantage of trading using opposite T Rex and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, Franklin Liberty 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 Liberty will offset losses from the drop in Franklin Liberty's long position.| T Rex vs. Freedom Day Dividend | T Rex vs. Franklin Templeton ETF | T Rex vs. iShares MSCI China | T Rex vs. Tidal Trust II |
| Franklin Liberty vs. Franklin Liberty Short | Franklin Liberty vs. Goldman Sachs Access | Franklin Liberty vs. Franklin Templeton ETF | Franklin Liberty vs. Franklin Liberty Federal |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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