Correlation Between Siit Emerging and Franklin Dynatech
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Franklin Dynatech 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 Siit Emerging and Franklin Dynatech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Franklin Dynatech Fund, you can compare the effects of market volatilities on Siit Emerging and Franklin Dynatech 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 Siit Emerging with a short position of Franklin Dynatech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Franklin Dynatech.
Diversification Opportunities for Siit Emerging and Franklin Dynatech
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Franklin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Franklin Dynatech Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Dynatech and Siit Emerging 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 Siit Emerging Markets are associated (or correlated) with Franklin Dynatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Dynatech has no effect on the direction of Siit Emerging i.e., Siit Emerging and Franklin Dynatech go up and down completely randomly.
Pair Corralation between Siit Emerging and Franklin Dynatech
Assuming the 90 days horizon Siit Emerging is expected to generate 2.26 times less return on investment than Franklin Dynatech. But when comparing it to its historical volatility, Siit Emerging Markets is 1.73 times less risky than Franklin Dynatech. It trades about 0.08 of its potential returns per unit of risk. Franklin Dynatech Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,150 in Franklin Dynatech Fund on September 14, 2024 and sell it today you would earn a total of 4,182 from holding Franklin Dynatech Fund or generate 41.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Siit Emerging Markets vs. Franklin Dynatech Fund
Performance |
| Timeline |
| Siit Emerging Markets |
| Franklin Dynatech |
Siit Emerging and Franklin Dynatech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Franklin Dynatech
The main advantage of trading using opposite Siit Emerging and Franklin Dynatech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Franklin Dynatech 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 Dynatech will offset losses from the drop in Franklin Dynatech's long position.| Siit Emerging vs. Alliancebernstein National Municipal | Siit Emerging vs. Bbh Intermediate Municipal | Siit Emerging vs. Doubleline Yield Opportunities | Siit Emerging vs. Pace High Yield |
| Franklin Dynatech vs. Ashmore Emerging Markets | Franklin Dynatech vs. Calvert Emerging Markets | Franklin Dynatech vs. Rbc Emerging Markets | Franklin Dynatech vs. Siit Emerging Markets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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