Correlation Between Franklin Vertible and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Vertible and Mainstay Convertible 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 Vertible and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Vertible Securities and Mainstay Vertible Fund, you can compare the effects of market volatilities on Franklin Vertible and Mainstay Convertible 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 Vertible with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Vertible and Mainstay Convertible.
Diversification Opportunities for Franklin Vertible and Mainstay Convertible
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Mainstay is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Franklin Vertible 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 Vertible Securities are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Franklin Vertible i.e., Franklin Vertible and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Franklin Vertible and Mainstay Convertible
Assuming the 90 days horizon Franklin Vertible Securities is expected to generate 1.14 times more return on investment than Mainstay Convertible. However, Franklin Vertible is 1.14 times more volatile than Mainstay Vertible Fund. It trades about 0.22 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.19 per unit of risk. If you would invest 2,325 in Franklin Vertible Securities on November 7, 2024 and sell it today you would earn a total of 54.00 from holding Franklin Vertible Securities or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Franklin Vertible |
| Mainstay Convertible |
Franklin Vertible and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Vertible and Mainstay Convertible
The main advantage of trading using opposite Franklin Vertible and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Vertible position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Franklin Vertible vs. Franklin Equity Income | Franklin Vertible vs. Franklin Utilities Fund | Franklin Vertible vs. Franklin Strategic Income | Franklin Vertible vs. Franklin Rising Dividends |
| Mainstay Convertible vs. Franklin Vertible Securities | Mainstay Convertible vs. Mainstay Floating Rate | Mainstay Convertible vs. Calamos Vertible Fund | Mainstay Convertible vs. Mainstay High Yield |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |