Correlation Between Oracle and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Oracle and Ftfa Franklin 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 Oracle and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Oracle and Ftfa Franklin 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 Oracle with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Ftfa Franklin.
Diversification Opportunities for Oracle and Ftfa Franklin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oracle and Ftfa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Oracle 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 Oracle are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Oracle i.e., Oracle and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Oracle and Ftfa Franklin
Given the investment horizon of 90 days Oracle is expected to generate 3.32 times more return on investment than Ftfa Franklin. However, Oracle is 3.32 times more volatile than Ftfa Franklin Templeton Growth. It trades about 0.16 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.12 per unit of risk. If you would invest 11,774 in Oracle on September 3, 2024 and sell it today you would earn a total of 6,710 from holding Oracle or generate 56.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Oracle |
| Ftfa Franklin Templeton |
Oracle and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Ftfa Franklin
The main advantage of trading using opposite Oracle and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. American Funds The | Ftfa Franklin vs. Income Fund Of | Ftfa Franklin vs. Income Fund Of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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