Correlation Between Ftfa Franklin and Lazard Us
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Lazard Us 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 Ftfa Franklin and Lazard Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Lazard Strategic Equity, you can compare the effects of market volatilities on Ftfa Franklin and Lazard Us 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 Ftfa Franklin with a short position of Lazard Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Lazard Us.
Diversification Opportunities for Ftfa Franklin and Lazard Us
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Lazard is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Lazard Strategic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Strategic Equity and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Lazard Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Strategic Equity has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Lazard Us go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Lazard Us
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.72 times more return on investment than Lazard Us. However, Ftfa Franklin Templeton Growth is 1.38 times less risky than Lazard Us. It trades about 0.18 of its potential returns per unit of risk. Lazard Strategic Equity is currently generating about 0.11 per unit of risk. If you would invest 2,003 in Ftfa Franklin Templeton Growth on September 5, 2024 and sell it today you would earn a total of 125.00 from holding Ftfa Franklin Templeton Growth or generate 6.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Lazard Strategic Equity
Performance |
Timeline |
Ftfa Franklin Templeton |
Lazard Strategic Equity |
Ftfa Franklin and Lazard Us Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ftfa Franklin and Lazard Us
The main advantage of trading using opposite Ftfa Franklin and Lazard Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Lazard Us 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 Lazard Us will offset losses from the drop in Lazard Us' long position.Ftfa Franklin vs. Quantitative Longshort Equity | Ftfa Franklin vs. Jhancock Short Duration | Ftfa Franklin vs. Ab Select Longshort | Ftfa Franklin vs. Aqr Long Short Equity |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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