Correlation Between Franklin High and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Franklin High and Allianzgi Nfj 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 Allianzgi Nfj 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 Allianzgi Nfj International, you can compare the effects of market volatilities on Franklin High and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Allianzgi Nfj.
Diversification Opportunities for Franklin High and Allianzgi Nfj
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Allianzgi is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Allianzgi Nfj International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Intern 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Intern has no effect on the direction of Franklin High i.e., Franklin High and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Franklin High and Allianzgi Nfj
Assuming the 90 days horizon Franklin High Yield is expected to generate 0.39 times more return on investment than Allianzgi Nfj. However, Franklin High Yield is 2.57 times less risky than Allianzgi Nfj. It trades about 0.17 of its potential returns per unit of risk. Allianzgi Nfj International is currently generating about -0.08 per unit of risk. If you would invest 906.00 in Franklin High Yield on September 5, 2024 and sell it today you would earn a total of 12.00 from holding Franklin High Yield or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Allianzgi Nfj International
Performance |
| Timeline |
| Franklin High Yield |
| Allianzgi Nfj Intern |
Franklin High and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Allianzgi Nfj
The main advantage of trading using opposite Franklin High and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Franklin High vs. Virtus High Yield | Franklin High vs. Artisan High Income | Franklin High vs. Calvert High Yield | Franklin High vs. Gmo High Yield |
| Allianzgi Nfj vs. Allianzgi Vertible Fund | Allianzgi Nfj vs. Allianzgi Nfj Mid Cap | Allianzgi Nfj vs. Allianzgi Focused Growth | Allianzgi Nfj vs. Allianzgi Nfj Large Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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