Correlation Between Bbh Intermediate and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Franklin Growth 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 Bbh Intermediate and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Franklin Growth Allocation, you can compare the effects of market volatilities on Bbh Intermediate and Franklin Growth 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 Bbh Intermediate with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Franklin Growth.
Diversification Opportunities for Bbh Intermediate and Franklin Growth
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BBH and Franklin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Franklin Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Allo and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Allo has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Franklin Growth go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Franklin Growth
Assuming the 90 days horizon Bbh Intermediate is expected to generate 3.35 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 3.42 times less risky than Franklin Growth. It trades about 0.1 of its potential returns per unit of risk. Franklin Growth Allocation is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,512 in Franklin Growth Allocation on September 5, 2024 and sell it today you would earn a total of 502.00 from holding Franklin Growth Allocation or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Franklin Growth Allocation
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Franklin Growth Allo |
Bbh Intermediate and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Franklin Growth
The main advantage of trading using opposite Bbh Intermediate and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Partner Fund |
| Franklin Growth vs. Franklin Mutual Beacon | Franklin Growth vs. Templeton Developing Markets | Franklin Growth vs. Franklin Mutual Global | Franklin Growth 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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