Correlation Between Franklin High and Allianzgi Global
Can any of the company-specific risk be diversified away by investing in both Franklin High and Allianzgi Global 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 Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Yield and Allianzgi Global Water, you can compare the effects of market volatilities on Franklin High and Allianzgi Global 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 Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Allianzgi Global.
Diversification Opportunities for Franklin High and Allianzgi Global
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Allianzgi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Allianzgi Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Water 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 Yield are associated (or correlated) with Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Water has no effect on the direction of Franklin High i.e., Franklin High and Allianzgi Global go up and down completely randomly.
Pair Corralation between Franklin High and Allianzgi Global
Assuming the 90 days horizon Franklin High Yield is expected to generate 0.33 times more return on investment than Allianzgi Global. However, Franklin High Yield is 2.99 times less risky than Allianzgi Global. It trades about 0.17 of its potential returns per unit of risk. Allianzgi Global Water is currently generating about -0.03 per unit of risk. If you would invest 920.00 in Franklin High Yield on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Franklin High Yield or generate 0.65% 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 Yield vs. Allianzgi Global Water
Performance |
| Timeline |
| Franklin High Yield |
| Allianzgi Global Water |
Franklin High and Allianzgi Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Allianzgi Global
The main advantage of trading using opposite Franklin High and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Allianzgi Global 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 Allianzgi Global will offset losses from the drop in Allianzgi Global's long position.| Franklin High vs. Gabelli Convertible And | Franklin High vs. Allianzgi Convertible Income | Franklin High vs. Lord Abbett Convertible | Franklin High vs. Advent Claymore Convertible |
| Allianzgi Global vs. Pace High Yield | Allianzgi Global vs. Franklin High Yield | Allianzgi Global vs. Doubleline Yield Opportunities | Allianzgi Global vs. Versatile Bond Portfolio |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |