Correlation Between Oracle and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Oracle and Franklin Strategic 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 Franklin Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Franklin Strategic Series, you can compare the effects of market volatilities on Oracle and Franklin Strategic 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 Franklin Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Franklin Strategic.
Diversification Opportunities for Oracle and Franklin Strategic
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oracle and Franklin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Franklin Strategic Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic Series 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 Franklin Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic Series has no effect on the direction of Oracle i.e., Oracle and Franklin Strategic go up and down completely randomly.
Pair Corralation between Oracle and Franklin Strategic
Given the investment horizon of 90 days Oracle is expected to generate 11.71 times more return on investment than Franklin Strategic. However, Oracle is 11.71 times more volatile than Franklin Strategic Series. It trades about 0.15 of its potential returns per unit of risk. Franklin Strategic Series is currently generating about 0.24 per unit of risk. If you would invest 12,528 in Oracle on September 5, 2024 and sell it today you would earn a total of 5,761 from holding Oracle or generate 45.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Franklin Strategic Series
Performance |
| Timeline |
| Oracle |
| Franklin Strategic Series |
Oracle and Franklin Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Franklin Strategic
The main advantage of trading using opposite Oracle and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Franklin Strategic vs. Franklin Mutual Beacon | Franklin Strategic vs. Templeton Developing Markets | Franklin Strategic vs. Franklin Mutual Global | Franklin Strategic vs. Franklin Mutual Global |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |