Correlation Between Franklin Small and MASSACHUSETTS
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By analyzing existing cross correlation between Franklin Small Mid Cap and MASSACHUSETTS INST TECHNOLOGY, you can compare the effects of market volatilities on Franklin Small and MASSACHUSETTS 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 Small with a short position of MASSACHUSETTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and MASSACHUSETTS.
Diversification Opportunities for Franklin Small and MASSACHUSETTS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and MASSACHUSETTS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap and MASSACHUSETTS INST TECHNOLOGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MASSACHUSETTS INST and Franklin Small 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 Small Mid Cap are associated (or correlated) with MASSACHUSETTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MASSACHUSETTS INST has no effect on the direction of Franklin Small i.e., Franklin Small and MASSACHUSETTS go up and down completely randomly.
Pair Corralation between Franklin Small and MASSACHUSETTS
Assuming the 90 days horizon Franklin Small Mid Cap is expected to generate 0.66 times more return on investment than MASSACHUSETTS. However, Franklin Small Mid Cap is 1.51 times less risky than MASSACHUSETTS. It trades about 0.1 of its potential returns per unit of risk. MASSACHUSETTS INST TECHNOLOGY is currently generating about -0.04 per unit of risk. If you would invest 3,756 in Franklin Small Mid Cap on September 25, 2024 and sell it today you would earn a total of 228.00 from holding Franklin Small Mid Cap or generate 6.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 90.63% |
Values | Daily Returns |
Franklin Small Mid Cap vs. MASSACHUSETTS INST TECHNOLOGY
Performance |
Timeline |
Franklin Small Mid |
MASSACHUSETTS INST |
Franklin Small and MASSACHUSETTS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Small and MASSACHUSETTS
The main advantage of trading using opposite Franklin Small and MASSACHUSETTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, MASSACHUSETTS 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 MASSACHUSETTS will offset losses from the drop in MASSACHUSETTS's long position.Franklin Small vs. Templeton Foreign Fund | Franklin Small vs. Franklin Growth Fund | Franklin Small vs. Franklin Balance Sheet | Franklin Small vs. Templeton Developing Markets |
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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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