Correlation Between Franklin Government and Multi-manager High
Can any of the company-specific risk be diversified away by investing in both Franklin Government and Multi-manager High 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 Government and Multi-manager High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Multi Manager High Yield, you can compare the effects of market volatilities on Franklin Government and Multi-manager High 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 Government with a short position of Multi-manager High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Government and Multi-manager High.
Diversification Opportunities for Franklin Government and Multi-manager High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Multi-manager is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Multi Manager High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager High and Franklin Government 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 Government Money are associated (or correlated) with Multi-manager High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager High has no effect on the direction of Franklin Government i.e., Franklin Government and Multi-manager High go up and down completely randomly.
Pair Corralation between Franklin Government and Multi-manager High
If you would invest 834.00 in Multi Manager High Yield on October 22, 2024 and sell it today you would earn a total of 10.00 from holding Multi Manager High Yield or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Multi Manager High Yield
Performance |
| Timeline |
| Franklin Government Money |
| Multi Manager High |
Franklin Government and Multi-manager High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Government and Multi-manager High
The main advantage of trading using opposite Franklin Government and Multi-manager High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Government position performs unexpectedly, Multi-manager High 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 Multi-manager High will offset losses from the drop in Multi-manager High's long position.| Franklin Government vs. Ambrus Core Bond | Franklin Government vs. Georgia Tax Free Bond | Franklin Government vs. Dws Government Money | Franklin Government vs. Nuveen Strategic Municipal |
| Multi-manager High vs. State Street Master | Multi-manager High vs. Ashmore Emerging Markets | Multi-manager High vs. Franklin Government Money | Multi-manager High vs. Jpmorgan Trust Iv |
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 Positions Ratings module to 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.
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