Correlation Between Franklin Mutual and Oklahoma College
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Oklahoma College 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 Franklin Mutual and Oklahoma College into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Beacon and Oklahoma College Savings, you can compare the effects of market volatilities on Franklin Mutual and Oklahoma College 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 Franklin Mutual with a short position of Oklahoma College. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Oklahoma College.
Diversification Opportunities for Franklin Mutual and Oklahoma College
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Oklahoma is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Beacon and Oklahoma College Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma College Savings and Franklin Mutual 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 Franklin Mutual Beacon are associated (or correlated) with Oklahoma College. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma College Savings has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Oklahoma College go up and down completely randomly.
Pair Corralation between Franklin Mutual and Oklahoma College
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.54 times less return on investment than Oklahoma College. But when comparing it to its historical volatility, Franklin Mutual Beacon is 1.21 times less risky than Oklahoma College. It trades about 0.05 of its potential returns per unit of risk. Oklahoma College Savings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Oklahoma College Savings on November 9, 2024 and sell it today you would earn a total of 145.00 from holding Oklahoma College Savings or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Beacon vs. Oklahoma College Savings
Performance |
| Timeline |
| Franklin Mutual Beacon |
| Oklahoma College Savings |
Franklin Mutual and Oklahoma College Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Oklahoma College
The main advantage of trading using opposite Franklin Mutual and Oklahoma College positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Oklahoma College 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 Oklahoma College will offset losses from the drop in Oklahoma College's long position.| Franklin Mutual vs. Avantis Large Cap | Franklin Mutual vs. Guidemark Large Cap | Franklin Mutual vs. Blackrock Large Cap | Franklin Mutual vs. Qs Large Cap |
| Oklahoma College vs. The Hartford High | Oklahoma College vs. Transamerica High Yield | Oklahoma College vs. Calamos High Income | Oklahoma College vs. The Hartford Floating |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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