Correlation Between Franklin High and Mainstay Retirement
Can any of the company-specific risk be diversified away by investing in both Franklin High and Mainstay Retirement 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 Retirement 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 Retirement 2050, you can compare the effects of market volatilities on Franklin High and Mainstay Retirement 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 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Mainstay Retirement.
Diversification Opportunities for Franklin High and Mainstay Retirement
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Mainstay Retirement 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Retirement 2050 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 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Retirement 2050 has no effect on the direction of Franklin High i.e., Franklin High and Mainstay Retirement go up and down completely randomly.
Pair Corralation between Franklin High and Mainstay Retirement
If you would invest 823.00 in Franklin High Yield on September 14, 2024 and sell it today you would earn a total of 103.00 from holding Franklin High Yield or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin High Yield vs. Mainstay Retirement 2050
Performance |
| Timeline |
| Franklin High Yield |
| Mainstay Retirement 2050 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Mainstay Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Mainstay Retirement
The main advantage of trading using opposite Franklin High and Mainstay Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Mainstay Retirement 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 Retirement will offset losses from the drop in Mainstay Retirement's long position.| Franklin High vs. Gabelli Convertible And | Franklin High vs. Allianzgi Convertible Income | Franklin High vs. Lord Abbett Convertible | Franklin High vs. Advent Claymore Convertible |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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