Correlation Between Franklin High and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Franklin High and Mainstay Cushing 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 Mainstay Cushing 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 Mainstay Cushing Mlp, you can compare the effects of market volatilities on Franklin High and Mainstay Cushing 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 Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Mainstay Cushing.
Diversification Opportunities for Franklin High and Mainstay Cushing
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Mainstay is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp 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 Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Franklin High i.e., Franklin High and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Franklin High and Mainstay Cushing
Assuming the 90 days horizon Franklin High is expected to generate 133.67 times less return on investment than Mainstay Cushing. But when comparing it to its historical volatility, Franklin High Income is 4.82 times less risky than Mainstay Cushing. It trades about 0.0 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,156 in Mainstay Cushing Mlp on September 15, 2024 and sell it today you would earn a total of 8.00 from holding Mainstay Cushing Mlp or generate 0.69% 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. Mainstay Cushing Mlp
Performance |
| Timeline |
| Franklin High Income |
| Mainstay Cushing Mlp |
Franklin High and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Mainstay Cushing
The main advantage of trading using opposite Franklin High and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Franklin High vs. Franklin Natural Resources | Franklin High vs. Alpsalerian Energy Infrastructure | Franklin High vs. World Energy Fund | Franklin High vs. Oil Gas Ultrasector |
| Mainstay Cushing vs. Mainstay High Yield | Mainstay Cushing vs. Mainstay Tax Free | Mainstay Cushing vs. Mainstay Income Builder | Mainstay Cushing 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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