Correlation Between Franklin Large and PHN Multi
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By analyzing existing cross correlation between Franklin Large Cap and PHN Multi Style All Cap, you can compare the effects of market volatilities on Franklin Large and PHN Multi 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 Large with a short position of PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Large and PHN Multi.
Diversification Opportunities for Franklin Large and PHN Multi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and PHN is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Large Cap and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style and Franklin Large 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 Large Cap are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of Franklin Large i.e., Franklin Large and PHN Multi go up and down completely randomly.
Pair Corralation between Franklin Large and PHN Multi
Assuming the 90 days trading horizon Franklin Large Cap is expected to generate 1.01 times more return on investment than PHN Multi. However, Franklin Large is 1.01 times more volatile than PHN Multi Style All Cap. It trades about 0.21 of its potential returns per unit of risk. PHN Multi Style All Cap is currently generating about 0.15 per unit of risk. If you would invest 4,716 in Franklin Large Cap on August 29, 2024 and sell it today you would earn a total of 203.00 from holding Franklin Large Cap or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Large Cap vs. PHN Multi Style All Cap
Performance |
| Timeline |
| Franklin Large Cap |
| PHN Multi Style |
Franklin Large and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Large and PHN Multi
The main advantage of trading using opposite Franklin Large and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Large position performs unexpectedly, PHN Multi 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 PHN Multi will offset losses from the drop in PHN Multi's long position.| Franklin Large vs. Franklin Bissett Corporate | Franklin Large vs. FT AlphaDEX Industrials | Franklin Large vs. Dynamic Active Dividend |
| PHN Multi vs. Fidelity Tactical High | PHN Multi vs. Fidelity ClearPath 2045 | PHN Multi vs. Bloom Select Income | PHN Multi vs. Global Healthcare Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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