Correlation Between Franklin High and Wanger International
Can any of the company-specific risk be diversified away by investing in both Franklin High and Wanger International 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 Wanger International 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 Wanger International Wanger, you can compare the effects of market volatilities on Franklin High and Wanger International 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 Wanger International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Wanger International.
Diversification Opportunities for Franklin High and Wanger International
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Wanger is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Wanger International Wanger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanger International 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 Wanger International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanger International has no effect on the direction of Franklin High i.e., Franklin High and Wanger International go up and down completely randomly.
Pair Corralation between Franklin High and Wanger International
Assuming the 90 days horizon Franklin High Income is expected to generate 0.29 times more return on investment than Wanger International. However, Franklin High Income is 3.42 times less risky than Wanger International. It trades about 0.13 of its potential returns per unit of risk. Wanger International Wanger is currently generating about -0.01 per unit of risk. If you would invest 161.00 in Franklin High Income on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Franklin High Income or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Franklin High Income vs. Wanger International Wanger
Performance |
| Timeline |
| Franklin High Income |
| Wanger International |
Franklin High and Wanger International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Wanger International
The main advantage of trading using opposite Franklin High and Wanger International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Wanger International 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 Wanger International will offset losses from the drop in Wanger International'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 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |