Correlation Between Franklin Federal and Gmo Equity
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Gmo Equity 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 Federal and Gmo Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Limited Term and Gmo Equity Allocation, you can compare the effects of market volatilities on Franklin Federal and Gmo Equity 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 Federal with a short position of Gmo Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Gmo Equity.
Diversification Opportunities for Franklin Federal and Gmo Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Gmo Equity Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Equity Allocation and Franklin Federal 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 Federal Limited Term are associated (or correlated) with Gmo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Equity Allocation has no effect on the direction of Franklin Federal i.e., Franklin Federal and Gmo Equity go up and down completely randomly.
Pair Corralation between Franklin Federal and Gmo Equity
If you would invest 1,019 in Franklin Federal Limited Term on June 11, 2025 and sell it today you would earn a total of 21.00 from holding Franklin Federal Limited Term or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Gmo Equity Allocation
Performance |
| Timeline |
| Franklin Federal Lim |
| Gmo Equity Allocation |
Risk-Adjusted Performance
Solid
Weak | Strong |
Franklin Federal and Gmo Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Gmo Equity
The main advantage of trading using opposite Franklin Federal and Gmo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Gmo Equity 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 Gmo Equity will offset losses from the drop in Gmo Equity's long position.| Franklin Federal vs. Highland Longshort Healthcare | Franklin Federal vs. Prudential Health Sciences | Franklin Federal vs. Tekla Healthcare Investors | Franklin Federal vs. Vanguard Health Care |
| Gmo Equity vs. Evaluator Conservative Rms | Gmo Equity vs. Massmutual Premier Diversified | Gmo Equity vs. American Funds Conservative | Gmo Equity vs. Lord Abbett Diversified |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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