Correlation Between Cmg Ultra and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Cmg Ultra and Franklin Federal 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 Cmg Ultra and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cmg Ultra Short and Franklin Federal Limited Term, you can compare the effects of market volatilities on Cmg Ultra and Franklin Federal 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 Cmg Ultra with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and Franklin Federal.
Diversification Opportunities for Cmg Ultra and Franklin Federal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cmg and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short and Franklin Federal Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Lim and Cmg Ultra 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 Cmg Ultra Short are associated (or correlated) with Franklin Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Lim has no effect on the direction of Cmg Ultra i.e., Cmg Ultra and Franklin Federal go up and down completely randomly.
Pair Corralation between Cmg Ultra and Franklin Federal
Assuming the 90 days horizon Cmg Ultra Short is expected to generate 1.32 times more return on investment than Franklin Federal. However, Cmg Ultra is 1.32 times more volatile than Franklin Federal Limited Term. It trades about 0.17 of its potential returns per unit of risk. Franklin Federal Limited Term is currently generating about 0.14 per unit of risk. If you would invest 921.00 in Cmg Ultra Short on October 9, 2025 and sell it today you would earn a total of 7.00 from holding Cmg Ultra Short or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cmg Ultra Short vs. Franklin Federal Limited Term
Performance |
| Timeline |
| Cmg Ultra Short |
| Franklin Federal Lim |
Cmg Ultra and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cmg Ultra and Franklin Federal
The main advantage of trading using opposite Cmg Ultra and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra position performs unexpectedly, Franklin Federal 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 Federal will offset losses from the drop in Franklin Federal's long position.| Cmg Ultra vs. Doubleline Emerging Markets | Cmg Ultra vs. Nasdaq 100 2x Strategy | Cmg Ultra vs. Dow 2x Strategy | Cmg Ultra vs. Seafarer Overseas Growth |
| Franklin Federal vs. Us Government Securities | Franklin Federal vs. Wesmark Government Bond | Franklin Federal vs. Blackrock Government Bond | Franklin Federal vs. Federated Government Income |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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