Correlation Between Franklin Lifesmart and Retirement Living
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart and Retirement Living 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 Lifesmart and Retirement Living into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Lifesmart Retirement and Retirement Living Through, you can compare the effects of market volatilities on Franklin Lifesmart and Retirement Living 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 Lifesmart with a short position of Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Retirement Living.
Diversification Opportunities for Franklin Lifesmart and Retirement Living
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Franklin and Retirement is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart Retirement and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through and Franklin Lifesmart 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 Lifesmart Retirement are associated (or correlated) with Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Retirement Living go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Retirement Living
Assuming the 90 days horizon Franklin Lifesmart Retirement is expected to generate 0.8 times more return on investment than Retirement Living. However, Franklin Lifesmart Retirement is 1.25 times less risky than Retirement Living. It trades about 0.03 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.02 per unit of risk. If you would invest 1,025 in Franklin Lifesmart Retirement on December 10, 2024 and sell it today you would earn a total of 10.00 from holding Franklin Lifesmart Retirement or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Lifesmart Retirement vs. Retirement Living Through
Performance |
Timeline |
Franklin Lifesmart |
Retirement Living Through |
Franklin Lifesmart and Retirement Living Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Lifesmart and Retirement Living
The main advantage of trading using opposite Franklin Lifesmart and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living's long position.Franklin Lifesmart vs. Aqr Long Short Equity | Franklin Lifesmart vs. Seix Govt Sec | Franklin Lifesmart vs. Blackrock Global Longshort | Franklin Lifesmart vs. Alpine Ultra Short |
Retirement Living vs. Oklahoma College Savings | Retirement Living vs. Rbc Bluebay Global | Retirement Living vs. Artisan High Income | Retirement Living vs. Barings High Yield |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |