Correlation Between Saat Market and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Market 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 Saat Market and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Franklin Emerging Market, you can compare the effects of market volatilities on Saat Market 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 Saat Market with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Franklin Emerging.
Diversification Opportunities for Saat Market and Franklin Emerging
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Saat and Franklin is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth 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 Saat Market 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 Saat Market Growth 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 Saat Market i.e., Saat Market and Franklin Emerging go up and down completely randomly.
Pair Corralation between Saat Market and Franklin Emerging
Assuming the 90 days horizon Saat Market Growth is expected to generate 2.09 times more return on investment than Franklin Emerging. However, Saat Market is 2.09 times more volatile than Franklin Emerging Market. It trades about 0.21 of its potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.19 per unit of risk. If you would invest 1,223 in Saat Market Growth on October 20, 2024 and sell it today you would earn a total of 23.00 from holding Saat Market Growth or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Saat Market Growth vs. Franklin Emerging Market
Performance |
| Timeline |
| Saat Market Growth |
| Franklin Emerging Market |
Saat Market and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Franklin Emerging
The main advantage of trading using opposite Saat Market and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market 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.| Saat Market vs. Nexpoint Real Estate | Saat Market vs. Jhancock Real Estate | Saat Market vs. Neuberger Berman Real | Saat Market vs. Rreef Property Trust |
| Franklin Emerging vs. Allianzgi Health Sciences | Franklin Emerging vs. Delaware Healthcare Fund | Franklin Emerging vs. The Hartford Healthcare | Franklin Emerging vs. Deutsche Health And |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |