Correlation Between Franklin Utilities and Icon Utilities
Can any of the company-specific risk be diversified away by investing in both Franklin Utilities and Icon Utilities 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 Utilities and Icon Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Utilities and Icon Utilities And, you can compare the effects of market volatilities on Franklin Utilities and Icon Utilities 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 Utilities with a short position of Icon Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Utilities and Icon Utilities.
Diversification Opportunities for Franklin Utilities and Icon Utilities
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Icon is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Utilities and Icon Utilities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Utilities And and Franklin Utilities 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 Utilities are associated (or correlated) with Icon Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Utilities And has no effect on the direction of Franklin Utilities i.e., Franklin Utilities and Icon Utilities go up and down completely randomly.
Pair Corralation between Franklin Utilities and Icon Utilities
If you would invest 1,870 in Franklin Utilities on March 1, 2024 and sell it today you would earn a total of 287.00 from holding Franklin Utilities or generate 15.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Franklin Utilities vs. Icon Utilities And
Performance |
Timeline |
Franklin Utilities |
Icon Utilities And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Utilities and Icon Utilities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Utilities and Icon Utilities
The main advantage of trading using opposite Franklin Utilities and Icon Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Utilities position performs unexpectedly, Icon Utilities 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 Icon Utilities will offset losses from the drop in Icon Utilities' long position.Franklin Utilities vs. Dominion Energy | Franklin Utilities vs. Atlantica Sustainable Infrastructure | Franklin Utilities vs. Consolidated Edison | Franklin Utilities vs. Eversource Energy |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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