Correlation Between Franklin High and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Franklin High and Mfs Lifetime 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 Mfs Lifetime 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 Mfs Lifetime 2065, you can compare the effects of market volatilities on Franklin High and Mfs Lifetime 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 Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Mfs Lifetime.
Diversification Opportunities for Franklin High and Mfs Lifetime
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Mfs is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 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 Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Franklin High i.e., Franklin High and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Franklin High and Mfs Lifetime
Assuming the 90 days horizon Franklin High is expected to generate 1.99 times less return on investment than Mfs Lifetime. But when comparing it to its historical volatility, Franklin High Yield is 2.28 times less risky than Mfs Lifetime. It trades about 0.1 of its potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 873.00 in Mfs Lifetime 2065 on September 12, 2024 and sell it today you would earn a total of 179.00 from holding Mfs Lifetime 2065 or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Franklin High Yield vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Franklin High Yield |
| Mfs Lifetime 2065 |
Franklin High and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Mfs Lifetime
The main advantage of trading using opposite Franklin High and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Mfs Lifetime 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 Mfs Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. SCOR PK | Franklin High vs. Morningstar Unconstrained Allocation |
| Mfs Lifetime vs. Ab Global Bond | Mfs Lifetime vs. Dws Government Money | Mfs Lifetime vs. Franklin High Yield | Mfs Lifetime vs. Western Asset Municipal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |