Correlation Between Franklin and Global Hard
Can any of the company-specific risk be diversified away by investing in both Franklin and Global Hard 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 Global Hard 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 Global Hard Assets, you can compare the effects of market volatilities on Franklin and Global Hard 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 Global Hard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Global Hard.
Diversification Opportunities for Franklin and Global Hard
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and GLOBAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Global Hard Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Hard Assets 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 Global Hard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Hard Assets has no effect on the direction of Franklin i.e., Franklin and Global Hard go up and down completely randomly.
Pair Corralation between Franklin and Global Hard
If you would invest 3,615 in Global Hard Assets on December 29, 2024 and sell it today you would earn a total of 295.00 from holding Global Hard Assets or generate 8.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.83% |
Values | Daily Returns |
Franklin Government Money vs. Global Hard Assets
Performance |
Timeline |
Franklin Government Money |
Global Hard Assets |
Franklin and Global Hard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin and Global Hard
The main advantage of trading using opposite Franklin and Global Hard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Global Hard 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 Hard will offset losses from the drop in Global Hard's long position.Franklin vs. Rbc Funds Trust | Franklin vs. The Short Term Municipal | Franklin vs. Short Term Government Fund | Franklin vs. Gamco Global Telecommunications |
Global Hard vs. Lord Abbett Affiliated | Global Hard vs. Cb Large Cap | Global Hard vs. Large Cap Fund | Global Hard vs. Dodge Cox Stock |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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