Correlation Between Ftfa Franklin and Global Strategy
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Global Strategy 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 Global Strategy 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 Global Strategy Fund, you can compare the effects of market volatilities on Ftfa Franklin and Global Strategy 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 Global Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Global Strategy.
Diversification Opportunities for Ftfa Franklin and Global Strategy
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ftfa and Global is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Global Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Strategy 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 Global Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Strategy has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Global Strategy go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Global Strategy
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 1.28 times more return on investment than Global Strategy. However, Ftfa Franklin is 1.28 times more volatile than Global Strategy Fund. It trades about 0.15 of its potential returns per unit of risk. Global Strategy Fund is currently generating about 0.12 per unit of risk. If you would invest 2,035 in Ftfa Franklin Templeton Growth on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Ftfa Franklin Templeton Growth or generate 4.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Global Strategy Fund
Performance |
Timeline |
Ftfa Franklin Templeton |
Global Strategy |
Ftfa Franklin and Global Strategy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ftfa Franklin and Global Strategy
The main advantage of trading using opposite Ftfa Franklin and Global Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Global Strategy 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 Global Strategy will offset losses from the drop in Global Strategy's long position.Ftfa Franklin vs. Lord Abbett Small | Ftfa Franklin vs. Ab Discovery Value | Ftfa Franklin vs. Royce Opportunity Fund | Ftfa Franklin vs. Vanguard Small Cap Value |
Global Strategy vs. Mid Cap Index | Global Strategy vs. Mid Cap Strategic | Global Strategy vs. Valic Company I | Global Strategy vs. Valic Company I |
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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