Correlation Between Franklin High and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Franklin High and Nasdaq 100 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 Nasdaq 100 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Franklin High and Nasdaq 100 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 Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Nasdaq 100.
Diversification Opportunities for Franklin High and Nasdaq 100
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Nasdaq is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Franklin High i.e., Franklin High and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Franklin High and Nasdaq 100
Assuming the 90 days horizon Franklin High Income is expected to generate 0.1 times more return on investment than Nasdaq 100. However, Franklin High Income is 10.35 times less risky than Nasdaq 100. It trades about 0.0 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about -0.03 per unit of risk. If you would invest 176.00 in Franklin High Income on September 14, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Income vs. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| Franklin High Income |
| Nasdaq 100 2x |
Franklin High and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Nasdaq 100
The main advantage of trading using opposite Franklin High and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Franklin High vs. Royce Opportunity Fund | Franklin High vs. Fpa Queens Road | Franklin High vs. Palm Valley Capital | Franklin High vs. Valic Company I |
| Nasdaq 100 vs. Basic Materials Fund | Nasdaq 100 vs. Basic Materials Fund | Nasdaq 100 vs. Banking Fund Class | Nasdaq 100 vs. Basic Materials Fund |
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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