Correlation Between Barings Us and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Barings Us and Franklin Government 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 Barings Us and Franklin Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Franklin Government Money, you can compare the effects of market volatilities on Barings Us and Franklin Government 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 Barings Us with a short position of Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Franklin Government.
Diversification Opportunities for Barings Us and Franklin Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Barings Us 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 Barings High Yield are associated (or correlated) with Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Barings Us i.e., Barings Us and Franklin Government go up and down completely randomly.
Pair Corralation between Barings Us and Franklin Government
If you would invest 806.00 in Barings High Yield on October 23, 2024 and sell it today you would earn a total of 8.00 from holding Barings High Yield or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Franklin Government Money
Performance |
| Timeline |
| Barings High Yield |
| Franklin Government Money |
Barings Us and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Franklin Government
The main advantage of trading using opposite Barings Us and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us position performs unexpectedly, Franklin Government 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 Government will offset losses from the drop in Franklin Government's long position.| Barings Us vs. Dreyfus High Yield | Barings Us vs. Blackrock High Yield | Barings Us vs. Jpmorgan High Yield | Barings Us vs. Federated High Yield |
| Franklin Government vs. Forum Real Estate | Franklin Government vs. Real Estate Ultrasector | Franklin Government vs. Tiaa Cref Real Estate | Franklin Government vs. Prudential Real Estate |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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