Correlation Between Franklin Adjustable and Evaluator Growth
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Evaluator Growth 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 Evaluator Growth 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 Evaluator Growth Rms, you can compare the effects of market volatilities on Franklin Adjustable and Evaluator Growth 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 Evaluator Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Evaluator Growth.
Diversification Opportunities for Franklin Adjustable and Evaluator Growth
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Evaluator is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Evaluator Growth Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Growth Rms 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 Evaluator Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Growth Rms has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Evaluator Growth go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Evaluator Growth
Assuming the 90 days horizon Franklin Adjustable Government is not expected to generate positive returns. However, Franklin Adjustable Government is 7.31 times less risky than Evaluator Growth. It waists most of its returns potential to compensate for thr risk taken. Evaluator Growth is generating about 0.4 per unit of risk. If you would invest 1,216 in Evaluator Growth Rms on April 14, 2025 and sell it today you would earn a total of 44.00 from holding Evaluator Growth Rms or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Evaluator Growth Rms
Performance |
| Timeline |
| Franklin Adjustable |
| Evaluator Growth Rms |
Franklin Adjustable and Evaluator Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Evaluator Growth
The main advantage of trading using opposite Franklin Adjustable and Evaluator Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Evaluator Growth 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 Evaluator Growth will offset losses from the drop in Evaluator Growth'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 |
| Evaluator Growth vs. Morningstar Defensive Bond | Evaluator Growth vs. Pace Municipal Fixed | Evaluator Growth vs. Municipal Bond Portfolio | Evaluator Growth vs. Ab Bond Inflation |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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