Correlation Between Simt Real and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Simt Real and Franklin Emerging 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 Simt Real and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Real Estate and Franklin Emerging Market, you can compare the effects of market volatilities on Simt Real and Franklin Emerging 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 Simt Real with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Real and Franklin Emerging.
Diversification Opportunities for Simt Real and Franklin Emerging
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simt and Franklin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Simt Real 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 Simt Real Estate are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Simt Real i.e., Simt Real and Franklin Emerging go up and down completely randomly.
Pair Corralation between Simt Real and Franklin Emerging
Assuming the 90 days horizon Simt Real Estate is expected to under-perform the Franklin Emerging. In addition to that, Simt Real is 5.42 times more volatile than Franklin Emerging Market. It trades about -0.08 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.13 per unit of volatility. If you would invest 1,157 in Franklin Emerging Market on November 7, 2024 and sell it today you would earn a total of 19.00 from holding Franklin Emerging Market or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Real Estate vs. Franklin Emerging Market
Performance |
| Timeline |
| Simt Real Estate |
| Franklin Emerging Market |
Simt Real and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Real and Franklin Emerging
The main advantage of trading using opposite Simt Real and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real position performs unexpectedly, Franklin Emerging 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 Emerging will offset losses from the drop in Franklin Emerging's long position.| Simt Real vs. Prudential Core Conservative | Simt Real vs. Tiaa Cref Lifestyle Conservative | Simt Real vs. Wealthbuilder Conservative Allocation | Simt Real vs. Tax Free Conservative Income |
| Franklin Emerging vs. Hsbc Treasury Money | Franklin Emerging vs. Dws Government Money | Franklin Emerging vs. Aig Government Money | Franklin Emerging vs. Franklin Government Money |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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