Correlation Between Franklin Templeton and Blackstone Gso

Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Blackstone Gso 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 Templeton and Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Franklin Templeton Limited and Blackstone Gso Senior, you can compare the effects of market volatilities on Franklin Templeton and Blackstone Gso 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 Templeton with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Blackstone Gso.

Diversification Opportunities for Franklin Templeton and Blackstone Gso

-0.07

Correlation Coefficient

Franklin Templeton  Blackstone Gso

Good diversification

The 3 months correlation between Franklin and Blackstone is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Limited and Blackstone Gso Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Senior and Franklin Templeton 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 Templeton Limited are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Senior has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Blackstone Gso go up and down completely randomly.

Pair Corralation between Franklin Templeton and Blackstone Gso

Considering the 90-day investment horizon Franklin Templeton Limited is expected to generate 1.41 times more return on investment than Blackstone Gso. However, Franklin Templeton is 1.41 times more volatile than Blackstone Gso Senior. It trades about 0.06 of its potential returns per unit of risk. Blackstone Gso Senior is currently generating about -0.02 per unit of risk. If you would invest  632.00  in Franklin Templeton Limited on December 29, 2024 and sell it today you would earn a total of  13.00  from holding Franklin Templeton Limited or generate 2.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Franklin Templeton Limited  vs.  Blackstone Gso Senior

Franklin Templeton

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Templeton Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Franklin Templeton is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Blackstone Gso Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Senior has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Franklin Templeton and Blackstone Gso

The main advantage of trading using opposite Franklin Templeton and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.

The idea behind Franklin Templeton Limited and Blackstone Gso Senior pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.