Correlation Between Franklin High and Ab All
Can any of the company-specific risk be diversified away by investing in both Franklin High and Ab All 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 Ab All 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 Ab All Market, you can compare the effects of market volatilities on Franklin High and Ab All 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 Ab All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Ab All.
Diversification Opportunities for Franklin High and Ab All
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and MRKAX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Ab All Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab All Market 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 Ab All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab All Market has no effect on the direction of Franklin High i.e., Franklin High and Ab All go up and down completely randomly.
Pair Corralation between Franklin High and Ab All
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 | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin High Yield vs. Ab All Market
Performance |
| Timeline |
| Franklin High Yield |
| Ab All Market |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Ab All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Ab All
The main advantage of trading using opposite Franklin High and Ab All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Ab All 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 Ab All will offset losses from the drop in Ab All'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 |
| Ab All vs. Dodge International Stock | Ab All vs. Ab Fixed Income Shares | Ab All vs. Cutler Equity | Ab All vs. Sarofim Equity |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |