Correlation Between Sit Us and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Sit Us and Franklin Adjustable 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 Sit Us and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Government Securities and Franklin Adjustable Government, you can compare the effects of market volatilities on Sit Us and Franklin Adjustable 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 Sit Us with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Us and Franklin Adjustable.
Diversification Opportunities for Sit Us and Franklin Adjustable
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sit and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Sit Us 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 Sit Government Securities are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Sit Us i.e., Sit Us and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Sit Us and Franklin Adjustable
Assuming the 90 days horizon Sit Government Securities is expected to generate 1.91 times more return on investment than Franklin Adjustable. However, Sit Us is 1.91 times more volatile than Franklin Adjustable Government. It trades about 0.2 of its potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.27 per unit of risk. If you would invest 1,028 in Sit Government Securities on May 28, 2025 and sell it today you would earn a total of 10.00 from holding Sit Government Securities or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Government Securities vs. Franklin Adjustable Government
Performance |
| Timeline |
| Sit Government Securities |
| Franklin Adjustable |
Sit Us and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Us and Franklin Adjustable
The main advantage of trading using opposite Sit Us and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Us position performs unexpectedly, Franklin Adjustable 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 Franklin Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Sit Us vs. Icon Financial Fund | Sit Us vs. Angel Oak Financial | Sit Us vs. John Hancock Financial | Sit Us vs. Gabelli Global Financial |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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