Correlation Between Tortoise Energy and Franklin Small-mid
Can any of the company-specific risk be diversified away by investing in both Tortoise Energy and Franklin Small-mid 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 Tortoise Energy and Franklin Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tortoise Energy Independence and Franklin Small Mid Cap, you can compare the effects of market volatilities on Tortoise Energy and Franklin Small-mid 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 Tortoise Energy with a short position of Franklin Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tortoise Energy and Franklin Small-mid.
Diversification Opportunities for Tortoise Energy and Franklin Small-mid
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tortoise and Franklin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tortoise Energy Independence and Franklin Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Small Mid and Tortoise Energy 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 Tortoise Energy Independence are associated (or correlated) with Franklin Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Small Mid has no effect on the direction of Tortoise Energy i.e., Tortoise Energy and Franklin Small-mid go up and down completely randomly.
Pair Corralation between Tortoise Energy and Franklin Small-mid
Assuming the 90 days horizon Tortoise Energy is expected to generate 2.1 times less return on investment than Franklin Small-mid. In addition to that, Tortoise Energy is 1.36 times more volatile than Franklin Small Mid Cap. It trades about 0.02 of its total potential returns per unit of risk. Franklin Small Mid Cap is currently generating about 0.06 per unit of volatility. If you would invest 3,487 in Franklin Small Mid Cap on October 15, 2024 and sell it today you would earn a total of 1,184 from holding Franklin Small Mid Cap or generate 33.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tortoise Energy Independence vs. Franklin Small Mid Cap
Performance |
| Timeline |
| Tortoise Energy Inde |
| Franklin Small Mid |
Tortoise Energy and Franklin Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tortoise Energy and Franklin Small-mid
The main advantage of trading using opposite Tortoise Energy and Franklin Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tortoise Energy position performs unexpectedly, Franklin Small-mid 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 Small-mid will offset losses from the drop in Franklin Small-mid's long position.| Tortoise Energy vs. Ashmore Emerging Markets | Tortoise Energy vs. Investec Emerging Markets | Tortoise Energy vs. Inverse Emerging Markets | Tortoise Energy vs. Lord Abbett Diversified |
| Franklin Small-mid vs. Franklin Mutual Beacon | Franklin Small-mid vs. Templeton Developing Markets | Franklin Small-mid vs. Franklin Mutual Global | Franklin Small-mid vs. Franklin Mutual Global |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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