Correlation Between Federated Strategic and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Federated Strategic and Franklin Government 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 Federated Strategic and Franklin Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Strategic Income and Franklin Government Money, you can compare the effects of market volatilities on Federated Strategic and Franklin Government 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 Federated Strategic with a short position of Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Strategic and Franklin Government.
Diversification Opportunities for Federated Strategic and Franklin Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Strategic Income and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Federated Strategic 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 Federated Strategic Income are associated (or correlated) with Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Federated Strategic i.e., Federated Strategic and Franklin Government go up and down completely randomly.
Pair Corralation between Federated Strategic and Franklin Government
If you would invest 813.00 in Federated Strategic Income on June 1, 2025 and sell it today you would earn a total of 28.00 from holding Federated Strategic Income or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Strategic Income vs. Franklin Government Money
Performance |
| Timeline |
| Federated Strategic |
| Franklin Government Money |
Federated Strategic and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Strategic and Franklin Government
The main advantage of trading using opposite Federated Strategic and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Strategic position performs unexpectedly, Franklin Government 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 Government will offset losses from the drop in Franklin Government's long position.| Federated Strategic vs. Davis Government Bond | Federated Strategic vs. Great West Government Mortgage | Federated Strategic vs. Short Term Government Fund | Federated Strategic vs. Wesmark Government Bond |
| Franklin Government vs. Qs Global Equity | Franklin Government vs. Rbb Fund | Franklin Government vs. Tactical Multi Purpose Fund | Franklin Government vs. Fm Investments Large |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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