Correlation Between Franklin Growth and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Allianzgi 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 Growth and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Fund and Allianzgi Convertible Income, you can compare the effects of market volatilities on Franklin Growth and Allianzgi 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 Growth with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Allianzgi Convertible.
Diversification Opportunities for Franklin Growth and Allianzgi Convertible
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Allianzgi is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Franklin Growth 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 Growth Fund are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Franklin Growth i.e., Franklin Growth and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Franklin Growth and Allianzgi Convertible
Assuming the 90 days horizon Franklin Growth Fund is expected to under-perform the Allianzgi Convertible. But the mutual fund apears to be less risky and, when comparing its historical volatility, Franklin Growth Fund is 74.55 times less risky than Allianzgi Convertible. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Allianzgi Convertible Income is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Allianzgi Convertible Income on December 4, 2024 and sell it today you would earn a total of 1,115 from holding Allianzgi Convertible Income or generate 284.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Fund vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Franklin Growth |
| Allianzgi Convertible |
Franklin Growth and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Allianzgi Convertible
The main advantage of trading using opposite Franklin Growth and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Allianzgi 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Franklin Growth vs. Nomura Real Estate | Franklin Growth vs. Cohen Steers Real | Franklin Growth vs. Rreef Property Trust | Franklin Growth vs. Amg Managers Centersquare |
| Allianzgi Convertible vs. Profunds Large Cap Growth | Allianzgi Convertible vs. Guidemark Large Cap | Allianzgi Convertible vs. Jpmorgan Large Cap | Allianzgi Convertible vs. Virtus Nfj Large Cap |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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