Correlation Between Franklin Libertyshares and Global X
Can any of the company-specific risk be diversified away by investing in both Franklin Libertyshares and Global X 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 Franklin Libertyshares and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Libertyshares ICAV and Global X Blockchain, you can compare the effects of market volatilities on Franklin Libertyshares and Global X 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 Franklin Libertyshares with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Libertyshares and Global X.
Diversification Opportunities for Franklin Libertyshares and Global X
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Global is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Libertyshares ICAV and Global X Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Blockchain and Franklin Libertyshares 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 Franklin Libertyshares ICAV are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Blockchain has no effect on the direction of Franklin Libertyshares i.e., Franklin Libertyshares and Global X go up and down completely randomly.
Pair Corralation between Franklin Libertyshares and Global X
Assuming the 90 days trading horizon Franklin Libertyshares is expected to generate 6.73 times less return on investment than Global X. But when comparing it to its historical volatility, Franklin Libertyshares ICAV is 4.94 times less risky than Global X. It trades about 0.06 of its potential returns per unit of risk. Global X Blockchain is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 653.00 in Global X Blockchain on November 4, 2024 and sell it today you would earn a total of 299.00 from holding Global X Blockchain or generate 45.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Libertyshares ICAV vs. Global X Blockchain
Performance |
| Timeline |
| Franklin Libertyshares |
| Global X Blockchain |
Franklin Libertyshares and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Libertyshares and Global X
The main advantage of trading using opposite Franklin Libertyshares and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Libertyshares position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Franklin Libertyshares vs. Franklin LibertyQ Global | Franklin Libertyshares vs. Franklin Libertyshares ICAV | Franklin Libertyshares vs. Franklin FTSE Asia | Franklin Libertyshares vs. Franklin FTSE Brazil |
| Global X vs. Global X Data | Global X vs. Global X Copper | Global X vs. Global X ETFs | Global X vs. Global X Infrastructure |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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