Correlation Between Franklin High and Barings Us
Can any of the company-specific risk be diversified away by investing in both Franklin High and Barings Us 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 Barings Us 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 Barings High Yield, you can compare the effects of market volatilities on Franklin High and Barings Us 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 Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Barings Us.
Diversification Opportunities for Franklin High and Barings Us
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Barings is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield 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 Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Franklin High i.e., Franklin High and Barings Us go up and down completely randomly.
Pair Corralation between Franklin High and Barings Us
Assuming the 90 days horizon Franklin High is expected to generate 86.67 times less return on investment than Barings Us. In addition to that, Franklin High is 1.47 times more volatile than Barings High Yield. It trades about 0.0 of its total potential returns per unit of risk. Barings High Yield is currently generating about 0.16 per unit of volatility. If you would invest 813.00 in Barings High Yield on November 5, 2024 and sell it today you would earn a total of 4.00 from holding Barings High Yield or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Barings High Yield
Performance |
| Timeline |
| Franklin High Yield |
| Barings High Yield |
Franklin High and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Barings Us
The main advantage of trading using opposite Franklin High and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Barings Us 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 Barings Us will offset losses from the drop in Barings Us' long position.| Franklin High vs. The Gabelli Healthcare | Franklin High vs. Blackrock Health Sciences | Franklin High vs. Alger Health Sciences | Franklin High vs. Invesco Global Health |
| Barings Us vs. Davenport Small Cap | Barings Us vs. Global Diversified Income | Barings Us vs. Gmo Quality Fund | Barings Us vs. Issachar Fund Class |
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 Stocks Directory module to find actively traded stocks across global markets.
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