Correlation Between Franklin Adjustable and Simt Large
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Simt Large 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 Adjustable and Simt Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Simt Large Cap, you can compare the effects of market volatilities on Franklin Adjustable and Simt Large 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 Adjustable with a short position of Simt Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Simt Large.
Diversification Opportunities for Franklin Adjustable and Simt Large
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Simt is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Simt Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Large Cap and Franklin Adjustable 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 Adjustable Government are associated (or correlated) with Simt Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Large Cap has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Simt Large go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Simt Large
Assuming the 90 days horizon Franklin Adjustable is expected to generate 11.47 times less return on investment than Simt Large. But when comparing it to its historical volatility, Franklin Adjustable Government is 7.24 times less risky than Simt Large. It trades about 0.14 of its potential returns per unit of risk. Simt Large Cap is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,594 in Simt Large Cap on June 4, 2025 and sell it today you would earn a total of 245.00 from holding Simt Large Cap or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Simt Large Cap
Performance |
| Timeline |
| Franklin Adjustable |
| Simt Large Cap |
Franklin Adjustable and Simt Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Simt Large
The main advantage of trading using opposite Franklin Adjustable and Simt Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Simt Large 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 Simt Large will offset losses from the drop in Simt Large's long position.| Franklin Adjustable vs. Blackrock Pa Muni | Franklin Adjustable vs. Lord Abbett Intermediate | Franklin Adjustable vs. Morningstar Municipal Bond | Franklin Adjustable vs. Dreyfus Municipal Bond |
| Simt Large vs. Ridgeworth Seix Government | Simt Large vs. Great West Government Mortgage | Simt Large vs. Wesmark Government Bond | Simt Large vs. Virtus Seix Government |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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