Correlation Between Franklin Convertible and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Franklin Convertible and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Franklin Convertible and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Convertible and Issachar Fund.
Diversification Opportunities for Franklin Convertible and Issachar Fund
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Issachar is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Franklin Convertible i.e., Franklin Convertible and Issachar Fund go up and down completely randomly.
Pair Corralation between Franklin Convertible and Issachar Fund
Assuming the 90 days horizon Franklin Vertible Securities is expected to under-perform the Issachar Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Franklin Vertible Securities is 1.99 times less risky than Issachar Fund. The mutual fund trades about -0.4 of its potential returns per unit of risk. The Issachar Fund Class is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Issachar Fund Class on October 13, 2024 and sell it today you would lose (55.00) from holding Issachar Fund Class or give up 5.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Issachar Fund Class
Performance |
| Timeline |
| Franklin Convertible |
| Issachar Fund Class |
Franklin Convertible and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Convertible and Issachar Fund
The main advantage of trading using opposite Franklin Convertible and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Convertible position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Franklin Convertible vs. Alphacentric Hedged Market | Franklin Convertible vs. T Rowe Price | Franklin Convertible vs. Aqr Sustainable Long Short | Franklin Convertible vs. Artisan Developing World |
| Issachar Fund vs. Dws Government Money | Issachar Fund vs. Blrc Sgy Mnp | Issachar Fund vs. Baird Quality Intermediate | Issachar Fund vs. T Rowe Price |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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