Correlation Between Franklin High and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both Franklin High and Invesco Peak 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 Invesco Peak 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 Invesco Peak Retirement, you can compare the effects of market volatilities on Franklin High and Invesco Peak 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 Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Invesco Peak.
Diversification Opportunities for Franklin High and Invesco Peak
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Invesco is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement 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 Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of Franklin High i.e., Franklin High and Invesco Peak go up and down completely randomly.
Pair Corralation between Franklin High and Invesco Peak
If you would invest 826.00 in Franklin High Yield on September 12, 2024 and sell it today you would earn a total of 91.00 from holding Franklin High Yield or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.28% |
| Values | Daily Returns |
Franklin High Yield vs. Invesco Peak Retirement
Performance |
| Timeline |
| Franklin High Yield |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Invesco Peak
The main advantage of trading using opposite Franklin High and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Invesco Peak 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 Invesco Peak will offset losses from the drop in Invesco Peak'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 |
| Invesco Peak vs. California High Yield Municipal | Invesco Peak vs. T Rowe Price | Invesco Peak vs. Franklin High Yield | Invesco Peak vs. T Rowe Price |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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