Correlation Between Rreef Property and Franklin Lifesmart
Can any of the company-specific risk be diversified away by investing in both Rreef Property and Franklin Lifesmart 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 Rreef Property and Franklin Lifesmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rreef Property Trust and Franklin Lifesmart Retirement, you can compare the effects of market volatilities on Rreef Property and Franklin Lifesmart 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 Rreef Property with a short position of Franklin Lifesmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rreef Property and Franklin Lifesmart.
Diversification Opportunities for Rreef Property and Franklin Lifesmart
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rreef and Franklin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Rreef Property Trust and Franklin Lifesmart Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Lifesmart and Rreef Property 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 Rreef Property Trust are associated (or correlated) with Franklin Lifesmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Lifesmart has no effect on the direction of Rreef Property i.e., Rreef Property and Franklin Lifesmart go up and down completely randomly.
Pair Corralation between Rreef Property and Franklin Lifesmart
Assuming the 90 days trading horizon Rreef Property Trust is expected to under-perform the Franklin Lifesmart. But the fund apears to be less risky and, when comparing its historical volatility, Rreef Property Trust is 1.32 times less risky than Franklin Lifesmart. The fund trades about -0.08 of its potential returns per unit of risk. The Franklin Lifesmart Retirement is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 885.00 in Franklin Lifesmart Retirement on November 22, 2024 and sell it today you would earn a total of 190.00 from holding Franklin Lifesmart Retirement or generate 21.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.39% |
Values | Daily Returns |
Rreef Property Trust vs. Franklin Lifesmart Retirement
Performance |
Timeline |
Rreef Property Trust |
Franklin Lifesmart |
Rreef Property and Franklin Lifesmart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Rreef Property and Franklin Lifesmart
The main advantage of trading using opposite Rreef Property and Franklin Lifesmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rreef Property position performs unexpectedly, Franklin Lifesmart 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 Lifesmart will offset losses from the drop in Franklin Lifesmart's long position.Rreef Property vs. Putnam Global Health | ||
Rreef Property vs. Eaton Vance Worldwide | ||
Rreef Property vs. The Hartford Healthcare | ||
Rreef Property vs. Alphacentric Lifesci Healthcare |
Franklin Lifesmart vs. Precious Metals And | ||
Franklin Lifesmart vs. International Investors Gold | ||
Franklin Lifesmart vs. Europac Gold Fund | ||
Franklin Lifesmart vs. Fidelity Advisor Gold |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |