Correlation Between Europe 125x and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Europe 125x 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 Europe 125x and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europe 125x Strategy and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Europe 125x 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 Europe 125x with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europe 125x and Ftfa Franklin.
Diversification Opportunities for Europe 125x and Ftfa Franklin
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Europe and Ftfa is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Europe 125x Strategy 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 Europe 125x 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 Europe 125x Strategy 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 Europe 125x i.e., Europe 125x and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Europe 125x and Ftfa Franklin
Assuming the 90 days horizon Europe 125x Strategy is expected to under-perform the Ftfa Franklin. In addition to that, Europe 125x is 1.9 times more volatile than Ftfa Franklin Templeton Growth. It trades about -0.17 of its total potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.16 per unit of volatility. If you would invest 2,010 in Ftfa Franklin Templeton Growth on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Ftfa Franklin Templeton Growth or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europe 125x Strategy vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Europe 125x Strategy |
| Ftfa Franklin Templeton |
Europe 125x and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europe 125x and Ftfa Franklin
The main advantage of trading using opposite Europe 125x and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europe 125x 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.| Europe 125x vs. Ftfa Franklin Templeton Growth | Europe 125x vs. Qs Moderate Growth | Europe 125x vs. William Blair Growth | Europe 125x vs. Franklin Growth Opportunities |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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