Correlation Between Siit Ultra and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Siit Ultra and Franklin Growth 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 Ultra and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Ultra Short and Franklin Growth Fund, you can compare the effects of market volatilities on Siit Ultra and Franklin Growth 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 Ultra with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Ultra and Franklin Growth.
Diversification Opportunities for Siit Ultra and Franklin Growth
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siit and FRANKLIN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siit Ultra Short and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Siit Ultra 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 Ultra Short are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth has no effect on the direction of Siit Ultra i.e., Siit Ultra and Franklin Growth go up and down completely randomly.
Pair Corralation between Siit Ultra and Franklin Growth
Assuming the 90 days horizon Siit Ultra Short is expected to generate 0.14 times more return on investment than Franklin Growth. However, Siit Ultra Short is 7.21 times less risky than Franklin Growth. It trades about 0.21 of its potential returns per unit of risk. Franklin Growth Fund is currently generating about -0.14 per unit of risk. If you would invest 992.00 in Siit Ultra Short on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Siit Ultra Short or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Ultra Short vs. Franklin Growth Fund
Performance |
| Timeline |
| Siit Ultra Short |
| Franklin Growth |
Siit Ultra and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Ultra and Franklin Growth
The main advantage of trading using opposite Siit Ultra and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Ultra position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Siit Ultra vs. Inflation Linked Fixed Income | Siit Ultra vs. Tiaa Cref Inflation Link | Siit Ultra vs. Ab Bond Inflation | Siit Ultra vs. Simt Multi Asset Inflation |
| Franklin Growth vs. Tax Managed Large Cap | Franklin Growth vs. American Mutual Fund | Franklin Growth vs. Fisher Large Cap | Franklin Growth vs. Blackrock Large Cap |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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