Correlation Between Transamerica Capital and Franklin
Can any of the company-specific risk be diversified away by investing in both Transamerica Capital and 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 Transamerica Capital and Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Capital Growth and Franklin Government Money, you can compare the effects of market volatilities on Transamerica Capital and 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 Transamerica Capital with a short position of Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Capital and Franklin.
Diversification Opportunities for Transamerica Capital and Franklin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transamerica and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Capital Growth and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Transamerica Capital 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 Transamerica Capital Growth are associated (or correlated) with Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Transamerica Capital i.e., Transamerica Capital and Franklin go up and down completely randomly.
Pair Corralation between Transamerica Capital and Franklin
If you would invest 100.00 in Franklin Government Money on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Government Money or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Transamerica Capital Growth vs. Franklin Government Money
Performance |
| Timeline |
| Transamerica Capital |
| Franklin Government Money |
Transamerica Capital and Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Capital and Franklin
The main advantage of trading using opposite Transamerica Capital and Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Capital position performs unexpectedly, 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 Franklin will offset losses from the drop in Franklin's long position.| Transamerica Capital vs. The Hartford Growth | Transamerica Capital vs. Gamco International Growth | Transamerica Capital vs. Mid Cap Growth | Transamerica Capital vs. Templeton Growth Fund |
| Franklin vs. Mairs Power Growth | Franklin vs. T Rowe Price | Franklin vs. Transamerica Capital Growth | Franklin vs. T Rowe Price |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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