Correlation Between Franklin Floating and DNB Norge
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By analyzing existing cross correlation between Franklin Floating Rate and DNB Norge Selektiv, you can compare the effects of market volatilities on Franklin Floating and DNB Norge 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 Floating with a short position of DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Floating and DNB Norge.
Diversification Opportunities for Franklin Floating and DNB Norge
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and DNB is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Floating Rate and DNB Norge Selektiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Norge Selektiv and Franklin Floating 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 Floating Rate are associated (or correlated) with DNB Norge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Norge Selektiv has no effect on the direction of Franklin Floating i.e., Franklin Floating and DNB Norge go up and down completely randomly.
Pair Corralation between Franklin Floating and DNB Norge
Assuming the 90 days trading horizon Franklin Floating Rate is expected to generate 0.13 times more return on investment than DNB Norge. However, Franklin Floating Rate is 7.43 times less risky than DNB Norge. It trades about 0.39 of its potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.04 per unit of risk. If you would invest 1,569 in Franklin Floating Rate on September 17, 2024 and sell it today you would earn a total of 34.00 from holding Franklin Floating Rate or generate 2.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Floating Rate vs. DNB Norge Selektiv
Performance |
Timeline |
Franklin Floating Rate |
DNB Norge Selektiv |
Franklin Floating and DNB Norge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Floating and DNB Norge
The main advantage of trading using opposite Franklin Floating and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Floating position performs unexpectedly, DNB Norge 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 DNB Norge will offset losses from the drop in DNB Norge's long position.Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Franklin Floating Rate | Franklin Floating vs. Dalata Hotel Group | Franklin Floating vs. Uniphar Group PLC |
DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Dalata Hotel Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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