Correlation Between Franklin High and Retirement Choices
Can any of the company-specific risk be diversified away by investing in both Franklin High and Retirement Choices 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 Retirement Choices 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 Retirement Choices At, you can compare the effects of market volatilities on Franklin High and Retirement Choices 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 Retirement Choices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Retirement Choices.
Diversification Opportunities for Franklin High and Retirement Choices
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Retirement is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Retirement Choices At in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Choices 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 Retirement Choices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Choices has no effect on the direction of Franklin High i.e., Franklin High and Retirement Choices go up and down completely randomly.
Pair Corralation between Franklin High and Retirement Choices
If you would invest 919.00 in Franklin High Yield on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Franklin High Yield or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin High Yield vs. Retirement Choices At
Performance |
| Timeline |
| Franklin High Yield |
| Retirement Choices |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Retirement Choices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Retirement Choices
The main advantage of trading using opposite Franklin High and Retirement Choices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Retirement Choices 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 Retirement Choices will offset losses from the drop in Retirement Choices' long position.| Franklin High vs. Franklin Mutual Beacon | Franklin High vs. Templeton Developing Markets | Franklin High vs. Franklin Mutual Global | Franklin High vs. Franklin Mutual Global |
| Retirement Choices vs. The National Tax Free | Retirement Choices vs. Pace High Yield | Retirement Choices vs. Western Asset Municipal | Retirement Choices vs. Franklin High Yield |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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