Correlation Between Balanced Fund and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Balanced Fund and Franklin Templeton 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 Balanced Fund and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Franklin Templeton Smacs, you can compare the effects of market volatilities on Balanced Fund and Franklin Templeton 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 Balanced Fund with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Franklin Templeton.
Diversification Opportunities for Balanced Fund and Franklin Templeton
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Balanced and Franklin is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor and Franklin Templeton Smacs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton Smacs and Balanced Fund 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 Balanced Fund Investor are associated (or correlated) with Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton Smacs has no effect on the direction of Balanced Fund i.e., Balanced Fund and Franklin Templeton go up and down completely randomly.
Pair Corralation between Balanced Fund and Franklin Templeton
Assuming the 90 days horizon Balanced Fund Investor is expected to under-perform the Franklin Templeton. But the mutual fund apears to be less risky and, when comparing its historical volatility, Balanced Fund Investor is 1.91 times less risky than Franklin Templeton. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Franklin Templeton Smacs is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Franklin Templeton Smacs on December 30, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Templeton Smacs or generate 0.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Balanced Fund Investor vs. Franklin Templeton Smacs
Performance |
Timeline |
Balanced Fund Investor |
Franklin Templeton Smacs |
Balanced Fund and Franklin Templeton Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Balanced Fund and Franklin Templeton
The main advantage of trading using opposite Balanced Fund and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund position performs unexpectedly, Franklin Templeton 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 Franklin Templeton will offset losses from the drop in Franklin Templeton's long position.Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
Franklin Templeton vs. Vanguard Money Market | Franklin Templeton vs. John Hancock Money | Franklin Templeton vs. Transamerica Financial Life | Franklin Templeton vs. Angel Oak Financial |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
CEOs Directory Screen CEOs from public companies around the world |