Correlation Between Franklin High and Victory Floating
Can any of the company-specific risk be diversified away by investing in both Franklin High and Victory Floating 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 Victory Floating 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 Victory Floating Rate, you can compare the effects of market volatilities on Franklin High and Victory Floating 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 Victory Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Victory Floating.
Diversification Opportunities for Franklin High and Victory Floating
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Victory is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Victory Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Floating Rate 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 Victory Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Floating Rate has no effect on the direction of Franklin High i.e., Franklin High and Victory Floating go up and down completely randomly.
Pair Corralation between Franklin High and Victory Floating
Assuming the 90 days horizon Franklin High Income is expected to generate 1.55 times more return on investment than Victory Floating. However, Franklin High is 1.55 times more volatile than Victory Floating Rate. It trades about 0.14 of its potential returns per unit of risk. Victory Floating Rate is currently generating about 0.16 per unit of risk. If you would invest 151.00 in Franklin High Income on September 12, 2024 and sell it today you would earn a total of 25.00 from holding Franklin High Income or generate 16.56% 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. Victory Floating Rate
Performance |
| Timeline |
| Franklin High Income |
| Victory Floating Rate |
Franklin High and Victory Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Victory Floating
The main advantage of trading using opposite Franklin High and Victory Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Victory Floating 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 Victory Floating will offset losses from the drop in Victory Floating'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 |
| Victory Floating vs. Ab Global Risk | Victory Floating vs. Franklin High Income | Victory Floating vs. T Rowe Price | Victory Floating vs. Needham Aggressive Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
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