Correlation Between Franklin International and Victory High
Can any of the company-specific risk be diversified away by investing in both Franklin International and Victory High 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 Franklin International and Victory High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin International Small and Victory High Yield, you can compare the effects of market volatilities on Franklin International and Victory High 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 Franklin International with a short position of Victory High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin International and Victory High.
Diversification Opportunities for Franklin International and Victory High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Victory is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Franklin International Small and Victory High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory High Yield and Franklin International 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 Franklin International Small are associated (or correlated) with Victory High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory High Yield has no effect on the direction of Franklin International i.e., Franklin International and Victory High go up and down completely randomly.
Pair Corralation between Franklin International and Victory High
If you would invest 524.00 in Victory High Yield on September 1, 2024 and sell it today you would earn a total of 32.00 from holding Victory High Yield or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Franklin International Small vs. Victory High Yield
Performance |
| Timeline |
| Franklin International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Victory High Yield |
Franklin International and Victory High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin International and Victory High
The main advantage of trading using opposite Franklin International and Victory High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin International position performs unexpectedly, Victory High 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 Victory High will offset losses from the drop in Victory High's long position.The idea behind Franklin International Small and Victory High Yield pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Victory High vs. Victory Rs International | Victory High vs. Victory High Yield | Victory High vs. Victory Sycamore Established | Victory High vs. Victory Integrity Discovery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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