Correlation Between Franklin International and Intel
Can any of the company-specific risk be diversified away by investing in both Franklin International and Intel 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 International and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin International Core and Intel, you can compare the effects of market volatilities on Franklin International and Intel 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 International with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin International and Intel.
Diversification Opportunities for Franklin International and Intel
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Intel is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Franklin International Core and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Franklin International 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 International Core are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Franklin International i.e., Franklin International and Intel go up and down completely randomly.
Pair Corralation between Franklin International and Intel
Given the investment horizon of 90 days Franklin International Core is expected to generate 0.25 times more return on investment than Intel. However, Franklin International Core is 4.05 times less risky than Intel. It trades about 0.08 of its potential returns per unit of risk. Intel is currently generating about -0.19 per unit of risk. If you would invest 3,043 in Franklin International Core on January 24, 2024 and sell it today you would earn a total of 101.00 from holding Franklin International Core or generate 3.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin International Core vs. Intel
Performance |
Timeline |
Franklin International |
Intel |
Franklin International and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin International and Intel
The main advantage of trading using opposite Franklin International and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin International position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.Franklin International vs. iShares ESG Aware | Franklin International vs. iShares ESG Aware | Franklin International vs. iShares ESG Aware | Franklin International vs. iShares MSCI USA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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