Correlation Between Franklin Canadian and AGFiQ Market
Can any of the company-specific risk be diversified away by investing in both Franklin Canadian and AGFiQ Market 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 Canadian and AGFiQ Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Canadian Short and AGFiQ Market Neutral, you can compare the effects of market volatilities on Franklin Canadian and AGFiQ Market 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 Canadian with a short position of AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Canadian and AGFiQ Market.
Diversification Opportunities for Franklin Canadian and AGFiQ Market
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and AGFiQ is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Canadian Short and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral and Franklin Canadian 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 Canadian Short are associated (or correlated) with AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of Franklin Canadian i.e., Franklin Canadian and AGFiQ Market go up and down completely randomly.
Pair Corralation between Franklin Canadian and AGFiQ Market
Assuming the 90 days trading horizon Franklin Canadian Short is expected to generate 0.07 times more return on investment than AGFiQ Market. However, Franklin Canadian Short is 15.1 times less risky than AGFiQ Market. It trades about 0.26 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about -0.06 per unit of risk. If you would invest 1,913 in Franklin Canadian Short on August 17, 2025 and sell it today you would earn a total of 34.00 from holding Franklin Canadian Short or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Canadian Short vs. AGFiQ Market Neutral
Performance |
| Timeline |
| Franklin Canadian Short |
| AGFiQ Market Neutral |
Franklin Canadian and AGFiQ Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Canadian and AGFiQ Market
The main advantage of trading using opposite Franklin Canadian and AGFiQ Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Canadian position performs unexpectedly, AGFiQ Market 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 AGFiQ Market will offset losses from the drop in AGFiQ Market's long position.| Franklin Canadian vs. BMO Long Provincial | Franklin Canadian vs. BMO Short Federal | Franklin Canadian vs. TD Select Short | Franklin Canadian vs. TD Active High |
| AGFiQ Market vs. iShares MSCI Canada | AGFiQ Market vs. RBC Canadian Bank | AGFiQ Market vs. Hamilton Gold Producer | AGFiQ Market vs. Global X SP |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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