Correlation Between Franklin Vertible and ESSEX
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By analyzing existing cross correlation between Franklin Vertible Securities and ESSEX PORTFOLIO L, you can compare the effects of market volatilities on Franklin Vertible and ESSEX 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 Vertible with a short position of ESSEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Vertible and ESSEX.
Diversification Opportunities for Franklin Vertible and ESSEX
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and ESSEX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and ESSEX PORTFOLIO L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESSEX PORTFOLIO L and Franklin Vertible 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 Vertible Securities are associated (or correlated) with ESSEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESSEX PORTFOLIO L has no effect on the direction of Franklin Vertible i.e., Franklin Vertible and ESSEX go up and down completely randomly.
Pair Corralation between Franklin Vertible and ESSEX
Assuming the 90 days horizon Franklin Vertible Securities is expected to generate 1.95 times more return on investment than ESSEX. However, Franklin Vertible is 1.95 times more volatile than ESSEX PORTFOLIO L. It trades about 0.08 of its potential returns per unit of risk. ESSEX PORTFOLIO L is currently generating about -0.01 per unit of risk. If you would invest 2,275 in Franklin Vertible Securities on September 25, 2024 and sell it today you would earn a total of 71.00 from holding Franklin Vertible Securities or generate 3.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 89.06% |
Values | Daily Returns |
Franklin Vertible Securities vs. ESSEX PORTFOLIO L
Performance |
Timeline |
Franklin Vertible |
ESSEX PORTFOLIO L |
Franklin Vertible and ESSEX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Vertible and ESSEX
The main advantage of trading using opposite Franklin Vertible and ESSEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Vertible position performs unexpectedly, ESSEX 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 ESSEX will offset losses from the drop in ESSEX's long position.Franklin Vertible vs. Franklin Mutual Beacon | Franklin Vertible vs. Templeton Developing Markets | Franklin Vertible vs. Franklin Mutual Global | Franklin Vertible vs. Franklin Mutual Global |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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