Correlation Between Twitter and Franklin Income
Can any of the company-specific risk be diversified away by investing in both Twitter and Franklin Income 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 Twitter and Franklin Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and Franklin Income Fund, you can compare the effects of market volatilities on Twitter and Franklin Income 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 Twitter with a short position of Franklin Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Franklin Income.
Diversification Opportunities for Twitter and Franklin Income
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Twitter and Franklin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Franklin Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Me Fund and Twitter 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 Twitter are associated (or correlated) with Franklin Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Me Fund has no effect on the direction of Twitter i.e., Twitter and Franklin Income go up and down completely randomly.
Pair Corralation between Twitter and Franklin Income
Given the investment horizon of 90 days Twitter is expected to generate 5.83 times more return on investment than Franklin Income. However, Twitter is 5.83 times more volatile than Franklin Income Fund. It trades about 0.03 of its potential returns per unit of risk. Franklin Income Fund is currently generating about 0.02 per unit of risk. If you would invest 4,980 in Twitter on January 26, 2024 and sell it today you would earn a total of 390.00 from holding Twitter or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.7% |
| Values | Daily Returns |
Twitter vs. Franklin Income Fund
Performance |
| Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Me Fund |
Twitter and Franklin Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twitter and Franklin Income
The main advantage of trading using opposite Twitter and Franklin Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, Franklin Income 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 Income will offset losses from the drop in Franklin Income's long position.| Twitter vs. Mid Atlantic Home Health | Twitter vs. Planet Fitness | Twitter vs. JBG SMITH Properties | Twitter vs. Bassett Furniture Industries |
| Franklin Income vs. Fidelity Strategic Dividend | Franklin Income vs. HUMANA INC | Franklin Income vs. Aquagold International | Franklin Income vs. Morningstar Unconstrained Allocation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |