Correlation Between Franklin High and Lazard Enhanced
Can any of the company-specific risk be diversified away by investing in both Franklin High and Lazard Enhanced 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 Lazard Enhanced 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 Lazard Enhanced Opportunities, you can compare the effects of market volatilities on Franklin High and Lazard Enhanced 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 Lazard Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Lazard Enhanced.
Diversification Opportunities for Franklin High and Lazard Enhanced
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Lazard is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Lazard Enhanced Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Enhanced Oppo 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 Lazard Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Enhanced Oppo has no effect on the direction of Franklin High i.e., Franklin High and Lazard Enhanced go up and down completely randomly.
Pair Corralation between Franklin High and Lazard Enhanced
Assuming the 90 days horizon Franklin High is expected to generate 219.0 times less return on investment than Lazard Enhanced. In addition to that, Franklin High is 2.18 times more volatile than Lazard Enhanced Opportunities. It trades about 0.0 of its total potential returns per unit of risk. Lazard Enhanced Opportunities is currently generating about 0.47 per unit of volatility. If you would invest 867.00 in Lazard Enhanced Opportunities on September 15, 2024 and sell it today you would earn a total of 8.00 from holding Lazard Enhanced Opportunities or generate 0.92% 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. Lazard Enhanced Opportunities
Performance |
| Timeline |
| Franklin High Yield |
| Lazard Enhanced Oppo |
Franklin High and Lazard Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Lazard Enhanced
The main advantage of trading using opposite Franklin High and Lazard Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Lazard Enhanced 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 Lazard Enhanced will offset losses from the drop in Lazard Enhanced's long position.| Franklin High vs. Red Oak Technology | Franklin High vs. Leggmason Partners Institutional | Franklin High vs. Arrow Managed Futures | Franklin High vs. Balanced Fund Investor |
| Lazard Enhanced vs. Franklin High Yield | Lazard Enhanced vs. Morningstar Defensive Bond | Lazard Enhanced vs. Dreyfusstandish Global Fixed | Lazard Enhanced vs. T Rowe Price |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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