Correlation Between Franklin Resources and Altisource Asset

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Franklin Resources and Altisource Asset 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 Altisource Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and Altisource Asset Management, you can compare the effects of market volatilities on Franklin Resources and Altisource Asset 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 Altisource Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and Altisource Asset.

Diversification Opportunities for Franklin Resources and Altisource Asset

0.71
  Correlation Coefficient

Poor diversification

The 3 months correlation between Franklin and Altisource is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources and Altisource Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altisource Asset Man 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 Altisource Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altisource Asset Man has no effect on the direction of Franklin Resources i.e., Franklin Resources and Altisource Asset go up and down completely randomly.

Pair Corralation between Franklin Resources and Altisource Asset

Considering the 90-day investment horizon Franklin Resources is expected to generate 0.51 times more return on investment than Altisource Asset. However, Franklin Resources is 1.96 times less risky than Altisource Asset. It trades about 0.02 of its potential returns per unit of risk. Altisource Asset Management is currently generating about 0.01 per unit of risk. If you would invest  2,074  in Franklin Resources on June 29, 2022 and sell it today you would earn a total of  216.00  from holding Franklin Resources or generate 10.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.6%
ValuesDaily Returns

Franklin Resources  vs.  Altisource Asset Management

 Performance (%) 
       Timeline  
Franklin Resources 
Franklin Performance
0 of 100
Over the last 90 days Franklin Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Franklin Resources is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Franklin Price Channel

Altisource Asset Man 
Altisource Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Altisource Asset Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Altisource Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Altisource Price Channel

Franklin Resources and Altisource Asset Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Franklin Resources and Altisource Asset

The main advantage of trading using opposite Franklin Resources and Altisource Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources position performs unexpectedly, Altisource Asset 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 Altisource Asset will offset losses from the drop in Altisource Asset's long position.
Franklin Resources vs. Kibush Capital Corp
The idea behind Franklin Resources and Altisource Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Altisource Asset vs. Kibush Capital Corp
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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go