Correlation Between Franklin and Channing Intrinsic

Can any of the company-specific risk be diversified away by investing in both Franklin and Channing Intrinsic 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 and Channing Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Franklin Government Money and Channing Intrinsic Value, you can compare the effects of market volatilities on Franklin and Channing Intrinsic 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 with a short position of Channing Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Channing Intrinsic.

Diversification Opportunities for Franklin and Channing Intrinsic

0.0

Correlation Coefficient

Franklin  Channing Intrinsic

Pay attention - limited upside

The 3 months correlation between Franklin and Channing is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Channing Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Channing Intrinsic Value and 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 Franklin Government Money are associated (or correlated) with Channing Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Channing Intrinsic Value has no effect on the direction of Franklin i.e., Franklin and Channing Intrinsic go up and down completely randomly.

Pair Corralation between Franklin and Channing Intrinsic

Assuming the 90 days horizon Franklin Government Money is expected to under-perform the Channing Intrinsic. In addition to that, Franklin is 2.89 times more volatile than Channing Intrinsic Value. It trades about -0.03 of its total potential returns per unit of risk. Channing Intrinsic Value is currently generating about 0.04 per unit of volatility. If you would invest  870.00  in Channing Intrinsic Value on October 10, 2024 and sell it today you would earn a total of  219.00  from holding Channing Intrinsic Value or generate 25.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Franklin Government Money  vs.  Channing Intrinsic Value

Franklin Government Money

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Franklin Government Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Franklin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Channing Intrinsic Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Channing Intrinsic Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Channing Intrinsic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Franklin and Channing Intrinsic

The main advantage of trading using opposite Franklin and Channing Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Channing Intrinsic 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 Channing Intrinsic will offset losses from the drop in Channing Intrinsic's long position.

The idea behind Franklin Government Money and Channing Intrinsic Value 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.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.