Correlation Between Barings Us and Franklin Corefolio
Can any of the company-specific risk be diversified away by investing in both Barings Us and Franklin Corefolio 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 Corefolio 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 Efolio Allocation, you can compare the effects of market volatilities on Barings Us and Franklin Corefolio 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 Corefolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Franklin Corefolio.
Diversification Opportunities for Barings Us and Franklin Corefolio
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Franklin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Franklin Efolio Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Efolio Allo 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 Corefolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Efolio Allo has no effect on the direction of Barings Us i.e., Barings Us and Franklin Corefolio go up and down completely randomly.
Pair Corralation between Barings Us and Franklin Corefolio
Assuming the 90 days horizon Barings Us is expected to generate 4.81 times less return on investment than Franklin Corefolio. But when comparing it to its historical volatility, Barings High Yield is 5.12 times less risky than Franklin Corefolio. It trades about 0.22 of its potential returns per unit of risk. Franklin Efolio Allocation is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,313 in Franklin Efolio Allocation on November 3, 2024 and sell it today you would earn a total of 82.00 from holding Franklin Efolio Allocation or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Franklin Efolio Allocation
Performance |
| Timeline |
| Barings High Yield |
| Franklin Efolio Allo |
Barings Us and Franklin Corefolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Franklin Corefolio
The main advantage of trading using opposite Barings Us and Franklin Corefolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us position performs unexpectedly, Franklin Corefolio 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 Corefolio will offset losses from the drop in Franklin Corefolio's long position.| Barings Us vs. Allianzgi Convertible Income | Barings Us vs. Fidelity Sai Convertible | Barings Us vs. Calamos Dynamic Convertible | Barings Us vs. Absolute Convertible Arbitrage |
| Franklin Corefolio vs. Live Oak Health | Franklin Corefolio vs. Eaton Vance Worldwide | Franklin Corefolio vs. Health Care Ultrasector | Franklin Corefolio vs. Baron Health Care |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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