Correlation Between Franklin Small and WPLAU
Specify exactly 2 symbols:
By analyzing existing cross correlation between Franklin Small Mid Cap and WPLAU 37 15 SEP 26, you can compare the effects of market volatilities on Franklin Small and WPLAU 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 WPLAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and WPLAU.
Diversification Opportunities for Franklin Small and WPLAU
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and WPLAU is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap and WPLAU 37 15 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPLAU 37 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 WPLAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPLAU 37 15 has no effect on the direction of Franklin Small i.e., Franklin Small and WPLAU go up and down completely randomly.
Pair Corralation between Franklin Small and WPLAU
Assuming the 90 days horizon Franklin Small Mid Cap is expected to generate 2.37 times more return on investment than WPLAU. However, Franklin Small is 2.37 times more volatile than WPLAU 37 15 SEP 26. It trades about 0.08 of its potential returns per unit of risk. WPLAU 37 15 SEP 26 is currently generating about 0.08 per unit of risk. If you would invest 2,747 in Franklin Small Mid Cap on September 23, 2024 and sell it today you would earn a total of 1,244 from holding Franklin Small Mid Cap or generate 45.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 24.35% |
Values | Daily Returns |
Franklin Small Mid Cap vs. WPLAU 37 15 SEP 26
Performance |
Timeline |
Franklin Small Mid |
WPLAU 37 15 |
Franklin Small and WPLAU Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Small and WPLAU
The main advantage of trading using opposite Franklin Small and WPLAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, WPLAU 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 WPLAU will offset losses from the drop in WPLAU'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 |
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 Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Commodity Directory Find actively traded commodities issued by global exchanges |