Correlation Between Cullen High and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Cullen High and Franklin Adjustable 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 Cullen High and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullen High Dividend and Franklin Adjustable Government, you can compare the effects of market volatilities on Cullen High and Franklin Adjustable 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 Cullen High with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen High and Franklin Adjustable.
Diversification Opportunities for Cullen High and Franklin Adjustable
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cullen and Franklin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cullen High Dividend and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Cullen 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 Cullen High Dividend are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Cullen High i.e., Cullen High and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Cullen High and Franklin Adjustable
Assuming the 90 days horizon Cullen High is expected to generate 31.7 times less return on investment than Franklin Adjustable. In addition to that, Cullen High is 4.54 times more volatile than Franklin Adjustable Government. It trades about 0.0 of its total potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.31 per unit of volatility. If you would invest 751.00 in Franklin Adjustable Government on November 28, 2024 and sell it today you would earn a total of 5.00 from holding Franklin Adjustable Government or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen High Dividend vs. Franklin Adjustable Government
Performance |
| Timeline |
| Cullen High Dividend |
| Franklin Adjustable |
Cullen High and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen High and Franklin Adjustable
The main advantage of trading using opposite Cullen High and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen High position performs unexpectedly, Franklin Adjustable 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 Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Cullen High vs. The Gabelli Healthcare | Cullen High vs. Deutsche Health And | Cullen High vs. Allianzgi Health Sciences | Cullen High vs. Baillie Gifford Health |
| Franklin Adjustable vs. Global Gold Fund | Franklin Adjustable vs. Invesco Gold Special | Franklin Adjustable vs. The Gold Bullion | Franklin Adjustable vs. Global Gold Fund |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |