Correlation Between FLEH and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both FLEH and Franklin FTSE 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 FLEH and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLEH and Franklin FTSE Germany, you can compare the effects of market volatilities on FLEH and Franklin FTSE 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 FLEH with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLEH and Franklin FTSE.
Diversification Opportunities for FLEH and Franklin FTSE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLEH and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLEH and Franklin FTSE Germany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Germany and FLEH 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 FLEH are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Germany has no effect on the direction of FLEH i.e., FLEH and Franklin FTSE go up and down completely randomly.
Pair Corralation between FLEH and Franklin FTSE
If you would invest 2,479 in Franklin FTSE Germany on December 2, 2024 and sell it today you would earn a total of 354.00 from holding Franklin FTSE Germany or generate 14.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
FLEH vs. Franklin FTSE Germany
Performance |
Timeline |
FLEH |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Franklin FTSE Germany |
FLEH and Franklin FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FLEH and Franklin FTSE
The main advantage of trading using opposite FLEH and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLEH position performs unexpectedly, Franklin FTSE 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 FTSE will offset losses from the drop in Franklin FTSE's long position.FLEH vs. Franklin FTSE Japan | FLEH vs. Franklin FTSE Germany | FLEH vs. Franklin FTSE Australia | FLEH vs. Franklin FTSE Canada |
Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. Franklin FTSE Australia | Franklin FTSE vs. Franklin FTSE Canada |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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