Correlation Between Franklin High and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Franklin High and Mainstay Map 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 Mainstay Map 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 Mainstay Map Equity, you can compare the effects of market volatilities on Franklin High and Mainstay Map 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 Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Mainstay Map.
Diversification Opportunities for Franklin High and Mainstay Map
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Mainstay is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Franklin High i.e., Franklin High and Mainstay Map go up and down completely randomly.
Pair Corralation between Franklin High and Mainstay Map
Assuming the 90 days horizon Franklin High Yield is expected to generate 0.09 times more return on investment than Mainstay Map. However, Franklin High Yield is 10.6 times less risky than Mainstay Map. It trades about 0.39 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about -0.24 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Mainstay Map Equity
Performance |
| Timeline |
| Franklin High Yield |
| Mainstay Map Equity |
Franklin High and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Mainstay Map
The main advantage of trading using opposite Franklin High and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map's 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 |
| Mainstay Map vs. Elfun Government Money | Mainstay Map vs. Short Term Government Fund | Mainstay Map vs. Dunham Porategovernment Bond | Mainstay Map vs. Long Term Government Fund |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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