Correlation Between Artisan Emerging and Franklin High
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and Franklin High 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 Artisan Emerging and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Emerging Markets and Franklin High Yield, you can compare the effects of market volatilities on Artisan Emerging and Franklin High 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 Artisan Emerging with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Franklin High.
Diversification Opportunities for Artisan Emerging and Franklin High
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Artisan and Franklin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and Artisan Emerging 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 Artisan Emerging Markets are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Franklin High go up and down completely randomly.
Pair Corralation between Artisan Emerging and Franklin High
Assuming the 90 days horizon Artisan Emerging Markets is expected to generate 0.84 times more return on investment than Franklin High. However, Artisan Emerging Markets is 1.2 times less risky than Franklin High. It trades about 0.16 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.07 per unit of risk. If you would invest 854.00 in Artisan Emerging Markets on September 3, 2024 and sell it today you would earn a total of 176.00 from holding Artisan Emerging Markets or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Emerging Markets vs. Franklin High Yield
Performance |
| Timeline |
| Artisan Emerging Markets |
| Franklin High Yield |
Artisan Emerging and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and Franklin High
The main advantage of trading using opposite Artisan Emerging and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, Franklin High 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 High will offset losses from the drop in Franklin High's long position.| Artisan Emerging vs. Morgan Stanley Emerging | Artisan Emerging vs. Kinetics Market Opportunities | Artisan Emerging vs. Massmutual Select Diversified | Artisan Emerging vs. Barings Emerging Markets |
| Franklin High vs. T Rowe Price | Franklin High vs. Artisan Emerging Markets | Franklin High vs. Arrow Managed Futures | Franklin High vs. T Rowe Price |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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