Correlation Between Franklin Adjustable and Tortoise Energy
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Tortoise Energy 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 Tortoise Energy 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 Tortoise Energy Infrastructure, you can compare the effects of market volatilities on Franklin Adjustable and Tortoise Energy 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 Tortoise Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Tortoise Energy.
Diversification Opportunities for Franklin Adjustable and Tortoise Energy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Tortoise is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Tortoise Energy Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Energy Infr 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 Tortoise Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Energy Infr has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Tortoise Energy go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Tortoise Energy
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.11 times more return on investment than Tortoise Energy. However, Franklin Adjustable Government is 8.8 times less risky than Tortoise Energy. It trades about 0.21 of its potential returns per unit of risk. Tortoise Energy Infrastructure is currently generating about 0.02 per unit of risk. If you would invest 745.00 in Franklin Adjustable Government on June 8, 2025 and sell it today you would earn a total of 10.00 from holding Franklin Adjustable Government or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Tortoise Energy Infrastructure
Performance |
| Timeline |
| Franklin Adjustable |
| Tortoise Energy Infr |
Franklin Adjustable and Tortoise Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Tortoise Energy
The main advantage of trading using opposite Franklin Adjustable and Tortoise Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Tortoise Energy 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 Tortoise Energy will offset losses from the drop in Tortoise Energy's long position.| Franklin Adjustable vs. Franklin Mutual Beacon | Franklin Adjustable vs. Templeton Developing Markets | Franklin Adjustable vs. Franklin Mutual Global | Franklin Adjustable vs. Franklin Mutual Global |
| Tortoise Energy vs. Deutsche Health And | Tortoise Energy vs. Alphacentric Lifesci Healthcare | Tortoise Energy vs. Alger Health Sciences | Tortoise Energy vs. Delaware Healthcare Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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