Correlation Between Atac Inflation and Franklin High
Can any of the company-specific risk be diversified away by investing in both Atac Inflation 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 Atac Inflation and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and Franklin High Yield, you can compare the effects of market volatilities on Atac Inflation 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 Atac Inflation with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Franklin High.
Diversification Opportunities for Atac Inflation and Franklin High
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atac and Franklin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation 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 Atac Inflation 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 Atac Inflation Rotation 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 Atac Inflation i.e., Atac Inflation and Franklin High go up and down completely randomly.
Pair Corralation between Atac Inflation and Franklin High
Assuming the 90 days horizon Atac Inflation Rotation is expected to under-perform the Franklin High. In addition to that, Atac Inflation is 2.99 times more volatile than Franklin High Yield. It trades about -0.15 of its total potential returns per unit of risk. Franklin High Yield is currently generating about -0.15 per unit of volatility. If you would invest 928.00 in Franklin High Yield on October 30, 2024 and sell it today you would lose (15.00) from holding Franklin High Yield or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atac Inflation Rotation vs. Franklin High Yield
Performance |
| Timeline |
| Atac Inflation Rotation |
| Franklin High Yield |
Atac Inflation and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and Franklin High
The main advantage of trading using opposite Atac Inflation and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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.| Atac Inflation vs. ATAC Rotation ETF | Atac Inflation vs. Tidal ETF Trust | Atac Inflation vs. Quadratic Interest Rate | Atac Inflation vs. Baron Global Advantage |
| Franklin High vs. Msift High Yield | Franklin High vs. Buffalo High Yield | Franklin High vs. Artisan High Income | Franklin High vs. Prudential High Yield |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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