Correlation Between Artisan High and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Artisan High and Franklin Strategic 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 High and Franklin Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and Franklin Strategic Series, you can compare the effects of market volatilities on Artisan High and Franklin Strategic 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 High with a short position of Franklin Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Franklin Strategic.
Diversification Opportunities for Artisan High and Franklin Strategic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Franklin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Franklin Strategic Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic Series and Artisan High 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 High Income are associated (or correlated) with Franklin Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic Series has no effect on the direction of Artisan High i.e., Artisan High and Franklin Strategic go up and down completely randomly.
Pair Corralation between Artisan High and Franklin Strategic
Assuming the 90 days horizon Artisan High is expected to generate 3.05 times less return on investment than Franklin Strategic. But when comparing it to its historical volatility, Artisan High Income is 4.13 times less risky than Franklin Strategic. It trades about 0.21 of its potential returns per unit of risk. Franklin Strategic Series is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Franklin Strategic Series on September 2, 2024 and sell it today you would earn a total of 17.00 from holding Franklin Strategic Series or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Franklin Strategic Series
Performance |
| Timeline |
| Artisan High Income |
| Franklin Strategic Series |
Artisan High and Franklin Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Franklin Strategic
The main advantage of trading using opposite Artisan High and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.| Artisan High vs. Small Midcap Dividend Income | Artisan High vs. Chartwell Small Cap | Artisan High vs. The Hartford Small | Artisan High vs. Touchstone Small Cap |
| Franklin Strategic vs. Franklin Mutual Beacon | Franklin Strategic vs. Templeton Developing Markets | Franklin Strategic vs. Franklin Mutual Global | Franklin Strategic vs. Franklin Mutual Global |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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