Correlation Between Franklin Convertible and Virtus Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Convertible and Virtus Convertible 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 Convertible and Virtus Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Vertible Securities and Virtus Convertible, you can compare the effects of market volatilities on Franklin Convertible and Virtus Convertible 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 Convertible with a short position of Virtus Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Convertible and Virtus Convertible.
Diversification Opportunities for Franklin Convertible and Virtus Convertible
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Virtus is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and Virtus Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Convertible and Franklin Convertible 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 Vertible Securities are associated (or correlated) with Virtus Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Convertible has no effect on the direction of Franklin Convertible i.e., Franklin Convertible and Virtus Convertible go up and down completely randomly.
Pair Corralation between Franklin Convertible and Virtus Convertible
Assuming the 90 days horizon Franklin Convertible is expected to generate 1.14 times less return on investment than Virtus Convertible. But when comparing it to its historical volatility, Franklin Vertible Securities is 1.16 times less risky than Virtus Convertible. It trades about 0.08 of its potential returns per unit of risk. Virtus Convertible is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,901 in Virtus Convertible on November 27, 2024 and sell it today you would earn a total of 661.00 from holding Virtus Convertible or generate 22.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Virtus Convertible
Performance |
| Timeline |
| Franklin Convertible |
| Virtus Convertible |
Franklin Convertible and Virtus Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Convertible and Virtus Convertible
The main advantage of trading using opposite Franklin Convertible and Virtus Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Convertible position performs unexpectedly, Virtus Convertible 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 Virtus Convertible will offset losses from the drop in Virtus Convertible's long position.| Franklin Convertible vs. Dws Global Macro | Franklin Convertible vs. Gmo Global Equity | Franklin Convertible vs. Rbc Global Equity | Franklin Convertible vs. Legg Mason Bw |
| Virtus Convertible vs. Ffcdax | Virtus Convertible vs. Wmcanx | Virtus Convertible vs. Flkypx | Virtus Convertible vs. Ftufox |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |