Correlation Between Europacific Growth and Franklin
Can any of the company-specific risk be diversified away by investing in both Europacific Growth 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 Europacific Growth and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Franklin Government Money, you can compare the effects of market volatilities on Europacific Growth 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 Europacific Growth with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Franklin.
Diversification Opportunities for Europacific Growth and Franklin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Europacific and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund 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 Europacific Growth 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 Europacific Growth Fund 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 Europacific Growth i.e., Europacific Growth and Franklin go up and down completely randomly.
Pair Corralation between Europacific Growth and Franklin
If you would invest 5,418 in Europacific Growth Fund on October 26, 2024 and sell it today you would earn a total of 209.00 from holding Europacific Growth Fund or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europacific Growth Fund vs. Franklin Government Money
Performance |
| Timeline |
| Europacific Growth |
| Franklin Government Money |
Europacific Growth and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Franklin
The main advantage of trading using opposite Europacific Growth and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth 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.| Europacific Growth vs. Franklin Government Money | Europacific Growth vs. Metropolitan West Porate | Europacific Growth vs. Transamerica Intermediate Muni | Europacific Growth vs. Artisan High Income |
| Franklin vs. Dws Government Money | Franklin vs. Blrc Sgy Mnp | Franklin vs. Morningstar Defensive Bond | Franklin vs. Ab Bond Inflation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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