Correlation Between Franklin Emerging and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Asg Managed 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 Emerging and Asg Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Emerging Market and Asg Managed Futures, you can compare the effects of market volatilities on Franklin Emerging and Asg Managed 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 Emerging with a short position of Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Asg Managed.
Diversification Opportunities for Franklin Emerging and Asg Managed
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRANKLIN and Asg is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures and Franklin Emerging 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 Emerging Market are associated (or correlated) with Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Asg Managed go up and down completely randomly.
Pair Corralation between Franklin Emerging and Asg Managed
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.31 times more return on investment than Asg Managed. However, Franklin Emerging Market is 3.21 times less risky than Asg Managed. It trades about 0.18 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 1,074 in Franklin Emerging Market on December 4, 2024 and sell it today you would earn a total of 117.00 from holding Franklin Emerging Market or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Emerging Market vs. Asg Managed Futures
Performance |
Timeline |
Franklin Emerging Market |
Asg Managed Futures |
Franklin Emerging and Asg Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Emerging and Asg Managed
The main advantage of trading using opposite Franklin Emerging and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.Franklin Emerging vs. Dodge Cox Stock | Franklin Emerging vs. American Mutual Fund | Franklin Emerging vs. Virtus Nfj Large Cap | Franklin Emerging vs. Profunds Large Cap Growth |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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