Correlation Between Franklin Adjustable and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Franklin Adjustable and Mainstay Large 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 Adjustable and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Adjustable Government and Mainstay Large Cap, you can compare the effects of market volatilities on Franklin Adjustable and Mainstay Large 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 Adjustable with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Adjustable and Mainstay Large.
Diversification Opportunities for Franklin Adjustable and Mainstay Large
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Mainstay is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Adjustable Government and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Franklin Adjustable 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 Adjustable Government are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Franklin Adjustable i.e., Franklin Adjustable and Mainstay Large go up and down completely randomly.
Pair Corralation between Franklin Adjustable and Mainstay Large
Assuming the 90 days horizon Franklin Adjustable Government is expected to generate 0.01 times more return on investment than Mainstay Large. However, Franklin Adjustable Government is 70.91 times less risky than Mainstay Large. It trades about 0.1 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.17 per unit of risk. If you would invest 754.00 in Franklin Adjustable Government on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Adjustable Government or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Adjustable Government vs. Mainstay Large Cap
Performance |
| Timeline |
| Franklin Adjustable |
| Mainstay Large Cap |
Franklin Adjustable and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Adjustable and Mainstay Large
The main advantage of trading using opposite Franklin Adjustable and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Adjustable position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Franklin Adjustable vs. SCOR PK | Franklin Adjustable vs. Morningstar Unconstrained Allocation | Franklin Adjustable vs. Via Renewables | Franklin Adjustable vs. Bondbloxx ETF Trust |
| Mainstay Large vs. Palm Valley Capital | Mainstay Large vs. Lsv Small Cap | Mainstay Large vs. Queens Road Small | Mainstay Large vs. Victory Rs Partners |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |