Correlation Between Cref Money and Franklin
Can any of the company-specific risk be diversified away by investing in both Cref Money and 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 Cref Money and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Franklin Government Money, you can compare the effects of market volatilities on Cref Money and 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 Cref Money with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Franklin.
Diversification Opportunities for Cref Money and Franklin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cref and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Cref Money 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 Cref Money Market are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Cref Money i.e., Cref Money and Franklin go up and down completely randomly.
Pair Corralation between Cref Money and Franklin
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.01 times more return on investment than Franklin. However, Cref Money Market is 140.21 times less risky than Franklin. It trades about 0.8 of its potential returns per unit of risk. Franklin Government Money is currently generating about -0.03 per unit of risk. If you would invest 2,709 in Cref Money Market on October 11, 2024 and sell it today you would earn a total of 277.00 from holding Cref Money Market or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Cref Money Market vs. Franklin Government Money
Performance |
| Timeline |
| Cref Money Market |
| Franklin Government Money |
Cref Money and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Franklin
The main advantage of trading using opposite Cref Money and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, 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 Franklin will offset losses from the drop in Franklin's long position.| Cref Money vs. Us Global Investors | Cref Money vs. Asg Global Alternatives | Cref Money vs. Ab Global Bond | Cref Money vs. Artisan Global Opportunities |
| Franklin vs. Mairs Power Growth | Franklin vs. T Rowe Price | Franklin vs. Transamerica Capital Growth | Franklin vs. T Rowe Price |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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