Correlation Between Franklin High and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both Franklin High and Fisher Investments 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 Fisher Investments 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 Fisher Large Cap, you can compare the effects of market volatilities on Franklin High and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Fisher Investments.
Diversification Opportunities for Franklin High and Fisher Investments
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Fisher is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of Franklin High i.e., Franklin High and Fisher Investments go up and down completely randomly.
Pair Corralation between Franklin High and Fisher Investments
Assuming the 90 days horizon Franklin High is expected to generate 134.0 times less return on investment than Fisher Investments. But when comparing it to its historical volatility, Franklin High Yield is 4.34 times less risky than Fisher Investments. It trades about 0.0 of its potential returns per unit of risk. Fisher Large Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Fisher Large Cap on November 7, 2024 and sell it today you would earn a total of 12.00 from holding Fisher Large Cap or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Fisher Large Cap
Performance |
| Timeline |
| Franklin High Yield |
| Fisher Investments |
Franklin High and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Fisher Investments
The main advantage of trading using opposite Franklin High and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.| Franklin High vs. Lord Abbett Diversified | Franklin High vs. Aqr Diversified Arbitrage | Franklin High vs. Jhancock Diversified Macro | Franklin High vs. Blackrock Conservative Prprdptfinstttnl |
| Fisher Investments vs. Jhvit International Small | Fisher Investments vs. Sp Smallcap 600 | Fisher Investments vs. Federated Kaufmann Small | Fisher Investments vs. Small Pany 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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