Correlation Between Franklin Small and 19123MAF0
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By analyzing existing cross correlation between Franklin Small Mid Cap and CCEP 15 15 JAN 27, you can compare the effects of market volatilities on Franklin Small and 19123MAF0 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 Small with a short position of 19123MAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and 19123MAF0.
Diversification Opportunities for Franklin Small and 19123MAF0
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and 19123MAF0 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap and CCEP 15 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCEP 15 15 and Franklin Small 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 Small Mid Cap are associated (or correlated) with 19123MAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCEP 15 15 has no effect on the direction of Franklin Small i.e., Franklin Small and 19123MAF0 go up and down completely randomly.
Pair Corralation between Franklin Small and 19123MAF0
Assuming the 90 days horizon Franklin Small Mid Cap is expected to generate 1.19 times more return on investment than 19123MAF0. However, Franklin Small is 1.19 times more volatile than CCEP 15 15 JAN 27. It trades about -0.19 of its potential returns per unit of risk. CCEP 15 15 JAN 27 is currently generating about -0.33 per unit of risk. If you would invest 4,182 in Franklin Small Mid Cap on September 24, 2024 and sell it today you would lose (191.00) from holding Franklin Small Mid Cap or give up 4.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 50.0% |
Values | Daily Returns |
Franklin Small Mid Cap vs. CCEP 15 15 JAN 27
Performance |
Timeline |
Franklin Small Mid |
CCEP 15 15 |
Franklin Small and 19123MAF0 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Small and 19123MAF0
The main advantage of trading using opposite Franklin Small and 19123MAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, 19123MAF0 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 19123MAF0 will offset losses from the drop in 19123MAF0's long position.Franklin Small vs. Templeton Foreign Fund | Franklin Small vs. Franklin Growth Fund | Franklin Small vs. Franklin Balance Sheet | Franklin Small vs. Templeton Developing Markets |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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