Correlation Between Franklin Exponential and Robo Global
Can any of the company-specific risk be diversified away by investing in both Franklin Exponential and Robo Global 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 Exponential and Robo Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Exponential Data and Robo Global Robotics, you can compare the effects of market volatilities on Franklin Exponential and Robo Global 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 Exponential with a short position of Robo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Exponential and Robo Global.
Diversification Opportunities for Franklin Exponential and Robo Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Robo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Exponential Data and Robo Global Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robo Global Robotics and Franklin Exponential 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 Exponential Data are associated (or correlated) with Robo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robo Global Robotics has no effect on the direction of Franklin Exponential i.e., Franklin Exponential and Robo Global go up and down completely randomly.
Pair Corralation between Franklin Exponential and Robo Global
Given the investment horizon of 90 days Franklin Exponential Data is expected to generate 0.94 times more return on investment than Robo Global. However, Franklin Exponential Data is 1.07 times less risky than Robo Global. It trades about 0.12 of its potential returns per unit of risk. Robo Global Robotics is currently generating about 0.02 per unit of risk. If you would invest 2,232 in Franklin Exponential Data on August 26, 2024 and sell it today you would earn a total of 430.00 from holding Franklin Exponential Data or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Exponential Data vs. Robo Global Robotics
Performance |
| Timeline |
| Franklin Exponential Data |
| Robo Global Robotics |
Franklin Exponential and Robo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Exponential and Robo Global
The main advantage of trading using opposite Franklin Exponential and Robo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Exponential position performs unexpectedly, Robo Global 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 Robo Global will offset losses from the drop in Robo Global's long position.| Franklin Exponential vs. Invesco DWA Utilities | Franklin Exponential vs. Invesco Dynamic Large | Franklin Exponential vs. Invesco Dynamic Large | Franklin Exponential vs. HUMANA INC |
| Robo Global vs. Main Sector Rotation | Robo Global vs. Franklin Exponential Data | Robo Global vs. Goldman Sachs Innovate |
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 Stocks Directory module to find actively traded stocks across global markets.
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