Correlation Between Franklin Mutual and Emerald Banking
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Emerald Banking 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 Emerald Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Financial and Emerald Banking And, you can compare the effects of market volatilities on Franklin Mutual and Emerald Banking 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 Emerald Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Emerald Banking.
Diversification Opportunities for Franklin Mutual and Emerald Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Emerald is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Financial and Emerald Banking And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Banking And 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 Financial are associated (or correlated) with Emerald Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Banking And has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Emerald Banking go up and down completely randomly.
Pair Corralation between Franklin Mutual and Emerald Banking
If you would invest (100.00) in Franklin Mutual Financial on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Franklin Mutual Financial or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Mutual Financial vs. Emerald Banking And
Performance |
| Timeline |
| Franklin Mutual Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Emerald Banking And |
Franklin Mutual and Emerald Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Emerald Banking
The main advantage of trading using opposite Franklin Mutual and Emerald Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Emerald Banking 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 Emerald Banking will offset losses from the drop in Emerald Banking's long position.| Franklin Mutual vs. Franklin Mutual European | Franklin Mutual vs. Franklin Natural Resources | Franklin Mutual vs. Franklin Real Estate | Franklin Mutual vs. Franklin Utilities Fund |
| Emerald Banking vs. Emerald Banking And | Emerald Banking vs. Emerald Banking And | Emerald Banking vs. Emerald Banking And | Emerald Banking vs. Rmb Mendon Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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