Correlation Between Franklin Resources and EBullion
Can any of the company-specific risk be diversified away by investing in both Franklin Resources and EBullion 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 Resources and EBullion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and EBullion, you can compare the effects of market volatilities on Franklin Resources and EBullion 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 Resources with a short position of EBullion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and EBullion.
Diversification Opportunities for Franklin Resources and EBullion
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and EBullion is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources and EBullion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBullion and Franklin Resources 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 Resources are associated (or correlated) with EBullion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBullion has no effect on the direction of Franklin Resources i.e., Franklin Resources and EBullion go up and down completely randomly.
Pair Corralation between Franklin Resources and EBullion
If you would invest 289.00 in EBullion on January 20, 2024 and sell it today you would earn a total of 0.00 from holding EBullion or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Franklin Resources vs. EBullion
Performance |
| Timeline |
| Franklin Resources |
| EBullion |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Resources and EBullion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Resources and EBullion
The main advantage of trading using opposite Franklin Resources and EBullion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources position performs unexpectedly, EBullion 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 EBullion will offset losses from the drop in EBullion's long position.| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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