Correlation Between Franklin High and Janus Global
Can any of the company-specific risk be diversified away by investing in both Franklin High and Janus Global 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 Janus Global 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 Janus Global Technology, you can compare the effects of market volatilities on Franklin High and Janus Global 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 Janus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Janus Global.
Diversification Opportunities for Franklin High and Janus Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Janus is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Janus Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Technology 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 Janus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Technology has no effect on the direction of Franklin High i.e., Franklin High and Janus Global go up and down completely randomly.
Pair Corralation between Franklin High and Janus Global
Assuming the 90 days horizon Franklin High is expected to generate 5.72 times less return on investment than Janus Global. But when comparing it to its historical volatility, Franklin High Yield is 4.42 times less risky than Janus Global. It trades about 0.08 of its potential returns per unit of risk. Janus Global Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,673 in Janus Global Technology on September 3, 2024 and sell it today you would earn a total of 3,358 from holding Janus Global Technology or generate 91.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Janus Global Technology
Performance |
| Timeline |
| Franklin High Yield |
| Janus Global Technology |
Franklin High and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Janus Global
The main advantage of trading using opposite Franklin High and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Janus Global 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 Janus Global will offset losses from the drop in Janus Global's long position.| Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield |
| Janus Global vs. Mid Cap Value Profund | Janus Global vs. Fpa Queens Road | Janus Global vs. Ultramid Cap Profund Ultramid Cap | Janus Global vs. Royce Opportunity Fund |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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