Correlation Between Franklin High and Calamos Market
Can any of the company-specific risk be diversified away by investing in both Franklin High and Calamos Market 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 Calamos Market 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 Calamos Market Neutral, you can compare the effects of market volatilities on Franklin High and Calamos Market 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 Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Calamos Market.
Diversification Opportunities for Franklin High and Calamos Market
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Calamos is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral 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 Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of Franklin High i.e., Franklin High and Calamos Market go up and down completely randomly.
Pair Corralation between Franklin High and Calamos Market
Assuming the 90 days horizon Franklin High Yield is expected to generate 1.48 times more return on investment than Calamos Market. However, Franklin High is 1.48 times more volatile than Calamos Market Neutral. It trades about 0.07 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.11 per unit of risk. If you would invest 816.00 in Franklin High Yield on November 27, 2024 and sell it today you would earn a total of 88.00 from holding Franklin High Yield or generate 10.78% 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. Calamos Market Neutral
Performance |
| Timeline |
| Franklin High Yield |
| Calamos Market Neutral |
Franklin High and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Calamos Market
The main advantage of trading using opposite Franklin High and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Calamos Market 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 Calamos Market will offset losses from the drop in Calamos Market's long position.| Franklin High vs. Rbc Emerging Markets | Franklin High vs. Buffalo High Yield | Franklin High vs. T Rowe Price | Franklin High vs. Intal High Relative |
| Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Innealta Capital Sector | Calamos Market vs. Calamos Antetokounmpo Sustainable | Calamos Market vs. Calamos Antetokounmpo Sustainable |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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