Correlation Between Franklin Liberty and Elevation Series

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Franklin Liberty and Elevation Series 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 Liberty and Elevation Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Liberty Systematic and Elevation Series Trust, you can compare the effects of market volatilities on Franklin Liberty and Elevation Series 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 Liberty with a short position of Elevation Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Liberty and Elevation Series.

Diversification Opportunities for Franklin Liberty and Elevation Series

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Franklin and Elevation is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Liberty Systematic and Elevation Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Series Trust and Franklin Liberty 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 Liberty Systematic are associated (or correlated) with Elevation Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Series Trust has no effect on the direction of Franklin Liberty i.e., Franklin Liberty and Elevation Series go up and down completely randomly.

Pair Corralation between Franklin Liberty and Elevation Series

Given the investment horizon of 90 days Franklin Liberty is expected to generate 16.18 times less return on investment than Elevation Series. But when comparing it to its historical volatility, Franklin Liberty Systematic is 2.47 times less risky than Elevation Series. It trades about 0.03 of its potential returns per unit of risk. Elevation Series Trust is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,159  in Elevation Series Trust on October 27, 2024 and sell it today you would earn a total of  517.00  from holding Elevation Series Trust or generate 16.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Franklin Liberty Systematic  vs.  Elevation Series Trust

 Performance 
       Timeline  
Franklin Liberty Sys 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Liberty Systematic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Franklin Liberty is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Elevation Series Trust 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Elevation Series Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Elevation Series exhibited solid returns over the last few months and may actually be approaching a breakup point.

Franklin Liberty and Elevation Series Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Franklin Liberty and Elevation Series

The main advantage of trading using opposite Franklin Liberty and Elevation Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Liberty position performs unexpectedly, Elevation Series 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 Elevation Series will offset losses from the drop in Elevation Series' long position.
The idea behind Franklin Liberty Systematic and Elevation Series Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets