Correlation Between Franklin High and Saat Servative
Can any of the company-specific risk be diversified away by investing in both Franklin High and Saat Servative 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 Saat Servative 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 Saat Servative Strategy, you can compare the effects of market volatilities on Franklin High and Saat Servative 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 Saat Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Saat Servative.
Diversification Opportunities for Franklin High and Saat Servative
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Saat is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Saat Servative Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Servative Strategy 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 Saat Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Servative Strategy has no effect on the direction of Franklin High i.e., Franklin High and Saat Servative go up and down completely randomly.
Pair Corralation between Franklin High and Saat Servative
Assuming the 90 days horizon Franklin High Yield is expected to generate 0.71 times more return on investment than Saat Servative. However, Franklin High Yield is 1.4 times less risky than Saat Servative. It trades about 0.2 of its potential returns per unit of risk. Saat Servative Strategy is currently generating about 0.03 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 7.00 from holding Franklin High Yield or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin High Yield vs. Saat Servative Strategy
Performance |
| Timeline |
| Franklin High Yield |
| Saat Servative Strategy |
Franklin High and Saat Servative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Saat Servative
The main advantage of trading using opposite Franklin High and Saat Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Saat Servative 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 Saat Servative will offset losses from the drop in Saat Servative'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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