Correlation Between Franklin Small and 532457CG1
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By analyzing existing cross correlation between Franklin Small Mid Cap and LLY 4875 27 FEB 53, you can compare the effects of market volatilities on Franklin Small and 532457CG1 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 532457CG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and 532457CG1.
Diversification Opportunities for Franklin Small and 532457CG1
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and 532457CG1 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap and LLY 4875 27 FEB 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLY 4875 27 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 532457CG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLY 4875 27 has no effect on the direction of Franklin Small i.e., Franklin Small and 532457CG1 go up and down completely randomly.
Pair Corralation between Franklin Small and 532457CG1
Assuming the 90 days horizon Franklin Small Mid Cap is expected to generate 0.55 times more return on investment than 532457CG1. However, Franklin Small Mid Cap is 1.81 times less risky than 532457CG1. It trades about 0.09 of its potential returns per unit of risk. LLY 4875 27 FEB 53 is currently generating about -0.01 per unit of risk. If you would invest 3,767 in Franklin Small Mid Cap on September 24, 2024 and sell it today you would earn a total of 224.00 from holding Franklin Small Mid Cap or generate 5.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 96.88% |
Values | Daily Returns |
Franklin Small Mid Cap vs. LLY 4875 27 FEB 53
Performance |
Timeline |
Franklin Small Mid |
LLY 4875 27 |
Franklin Small and 532457CG1 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Small and 532457CG1
The main advantage of trading using opposite Franklin Small and 532457CG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, 532457CG1 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 532457CG1 will offset losses from the drop in 532457CG1'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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