Correlation Between Franklin High and Ab Growth
Can any of the company-specific risk be diversified away by investing in both Franklin High and Ab Growth 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 High and Ab Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Income and Ab Growth Fund, you can compare the effects of market volatilities on Franklin High and Ab Growth 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 High with a short position of Ab Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Ab Growth.
Diversification Opportunities for Franklin High and Ab Growth
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and AGRFX is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Ab Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Growth Fund and Franklin 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 Franklin High Income are associated (or correlated) with Ab Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Growth Fund has no effect on the direction of Franklin High i.e., Franklin High and Ab Growth go up and down completely randomly.
Pair Corralation between Franklin High and Ab Growth
Assuming the 90 days horizon Franklin High Income is expected to generate 0.06 times more return on investment than Ab Growth. However, Franklin High Income is 15.63 times less risky than Ab Growth. It trades about 0.0 of its potential returns per unit of risk. Ab Growth Fund is currently generating about -0.17 per unit of risk. If you would invest 176.00 in Franklin High Income on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Franklin High Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Income vs. Ab Growth Fund
Performance |
| Timeline |
| Franklin High Income |
| Ab Growth Fund |
Franklin High and Ab Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Ab Growth
The main advantage of trading using opposite Franklin High and Ab Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Ab Growth 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 Ab Growth will offset losses from the drop in Ab Growth's long position.| Franklin High vs. SCOR PK | Franklin High vs. Morningstar Unconstrained Allocation | Franklin High vs. Via Renewables | Franklin High vs. Bondbloxx ETF Trust |
| Ab Growth vs. Intal High Relative | Ab Growth vs. Siit High Yield | Ab Growth vs. T Rowe Price | Ab Growth vs. Franklin High Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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