Correlation Between Franklin High and Hotchkis Wiley
Can any of the company-specific risk be diversified away by investing in both Franklin High and Hotchkis Wiley 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 Hotchkis Wiley 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 Hotchkis Wiley Diversified, you can compare the effects of market volatilities on Franklin High and Hotchkis Wiley 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 Hotchkis Wiley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Hotchkis Wiley.
Diversification Opportunities for Franklin High and Hotchkis Wiley
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Hotchkis is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Hotchkis Wiley Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotchkis Wiley Diver 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 Hotchkis Wiley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotchkis Wiley Diver has no effect on the direction of Franklin High i.e., Franklin High and Hotchkis Wiley go up and down completely randomly.
Pair Corralation between Franklin High and Hotchkis Wiley
Assuming the 90 days horizon Franklin High is expected to generate 5.21 times less return on investment than Hotchkis Wiley. But when comparing it to its historical volatility, Franklin High Income is 4.66 times less risky than Hotchkis Wiley. It trades about 0.12 of its potential returns per unit of risk. Hotchkis Wiley Diversified is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,295 in Hotchkis Wiley Diversified on August 24, 2024 and sell it today you would earn a total of 101.00 from holding Hotchkis Wiley Diversified or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Franklin High Income vs. Hotchkis Wiley Diversified
Performance |
| Timeline |
| Franklin High Income |
| Hotchkis Wiley Diver |
Franklin High and Hotchkis Wiley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Hotchkis Wiley
The main advantage of trading using opposite Franklin High and Hotchkis Wiley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Hotchkis Wiley 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 Hotchkis Wiley will offset losses from the drop in Hotchkis Wiley's long position.| Franklin High vs. Prudential High Yield | Franklin High vs. Parametric Modity Strategy | Franklin High vs. HUMANA INC | Franklin High vs. Aquagold International |
| Hotchkis Wiley vs. Metropolitan West High | Hotchkis Wiley vs. Franklin High Income | Hotchkis Wiley vs. Siit High Yield | Hotchkis Wiley vs. Victory 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |