Correlation Between Ftfa Franklin and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Mainstay 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 Ftfa Franklin and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Mainstay High Yield, you can compare the effects of market volatilities on Ftfa Franklin and Mainstay 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 Ftfa Franklin with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Mainstay High.
Diversification Opportunities for Ftfa Franklin and Mainstay High
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ftfa and Mainstay is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Mainstay High go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Mainstay High
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 1.94 times more return on investment than Mainstay High. However, Ftfa Franklin is 1.94 times more volatile than Mainstay High Yield. It trades about 0.1 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.09 per unit of risk. If you would invest 1,546 in Ftfa Franklin Templeton Growth on September 14, 2024 and sell it today you would earn a total of 574.00 from holding Ftfa Franklin Templeton Growth or generate 37.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Mainstay High Yield
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Mainstay High Yield |
Ftfa Franklin and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Mainstay High
The main advantage of trading using opposite Ftfa Franklin and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Mainstay 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Ftfa Franklin vs. Ashmore Emerging Markets | Ftfa Franklin vs. Rbc Emerging Markets | Ftfa Franklin vs. Shelton Emerging Markets | Ftfa Franklin vs. Investec Emerging Markets |
| Mainstay High vs. Mainstay High Yield | Mainstay High vs. Mainstay Tax Free | Mainstay High vs. Mainstay Income Builder | Mainstay High vs. Mainstay Large Cap |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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