Correlation Between Franklin High and Johcm Global
Can any of the company-specific risk be diversified away by investing in both Franklin High and Johcm 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 Johcm 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 Johcm Global Income, you can compare the effects of market volatilities on Franklin High and Johcm 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 Johcm Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Johcm Global.
Diversification Opportunities for Franklin High and Johcm Global
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Johcm is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Johcm Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Johcm Global Income 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 Johcm Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Johcm Global Income has no effect on the direction of Franklin High i.e., Franklin High and Johcm Global go up and down completely randomly.
Pair Corralation between Franklin High and Johcm Global
If you would invest 905.00 in Franklin High Yield on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Franklin High Yield or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin High Yield vs. Johcm Global Income
Performance |
| Timeline |
| Franklin High Yield |
| Johcm Global Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Johcm Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Johcm Global
The main advantage of trading using opposite Franklin High and Johcm Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Johcm 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 Johcm Global will offset losses from the drop in Johcm Global's long position.| Franklin High vs. Cref Money Market | Franklin High vs. Chestnut Street Exchange | Franklin High vs. Aig Government Money | Franklin High vs. Matson Money Equity |
| Johcm Global vs. Jhancock Disciplined Value | Johcm Global vs. Aqr Large Cap | Johcm Global vs. Americafirst Large Cap | Johcm Global vs. Lord Abbett Affiliated |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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