Correlation Between Intal High and Franklin New
Can any of the company-specific risk be diversified away by investing in both Intal High and Franklin New 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 Intal High and Franklin New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intal High Relative and Franklin New York, you can compare the effects of market volatilities on Intal High and Franklin New 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 Intal High with a short position of Franklin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intal High and Franklin New.
Diversification Opportunities for Intal High and Franklin New
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intal and Franklin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Intal High Relative and Franklin New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin New York and Intal 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 Intal High Relative are associated (or correlated) with Franklin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin New York has no effect on the direction of Intal High i.e., Intal High and Franklin New go up and down completely randomly.
Pair Corralation between Intal High and Franklin New
Assuming the 90 days horizon Intal High Relative is expected to generate 3.44 times more return on investment than Franklin New. However, Intal High is 3.44 times more volatile than Franklin New York. It trades about 0.03 of its potential returns per unit of risk. Franklin New York is currently generating about 0.06 per unit of risk. If you would invest 1,230 in Intal High Relative on September 14, 2024 and sell it today you would earn a total of 68.00 from holding Intal High Relative or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intal High Relative vs. Franklin New York
Performance |
| Timeline |
| Intal High Relative |
| Franklin New York |
Intal High and Franklin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intal High and Franklin New
The main advantage of trading using opposite Intal High and Franklin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intal High position performs unexpectedly, Franklin New 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 New will offset losses from the drop in Franklin New's long position.| Intal High vs. Sarofim Equity | Intal High vs. Mondrian Global Equity | Intal High vs. Multimedia Portfolio Multimedia | Intal High vs. Gmo Global Equity |
| Franklin New vs. Franklin Federal Limited Term | Franklin New vs. Delaware Investments Ultrashort | Franklin New vs. Angel Oak Ultrashort | Franklin New vs. Boston Partners Longshort |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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