Correlation Between Franklin International and Jpmorgan High
Can any of the company-specific risk be diversified away by investing in both Franklin International and Jpmorgan 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 International and Jpmorgan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin International Growth and Jpmorgan High Yield, you can compare the effects of market volatilities on Franklin International and Jpmorgan 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 International with a short position of Jpmorgan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin International and Jpmorgan High.
Diversification Opportunities for Franklin International and Jpmorgan High
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Jpmorgan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Franklin International Growth and Jpmorgan High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan High Yield and Franklin International 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 International Growth are associated (or correlated) with Jpmorgan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan High Yield has no effect on the direction of Franklin International i.e., Franklin International and Jpmorgan High go up and down completely randomly.
Pair Corralation between Franklin International and Jpmorgan High
Assuming the 90 days horizon Franklin International is expected to generate 2.34 times less return on investment than Jpmorgan High. In addition to that, Franklin International is 4.54 times more volatile than Jpmorgan High Yield. It trades about 0.02 of its total potential returns per unit of risk. Jpmorgan High Yield is currently generating about 0.19 per unit of volatility. If you would invest 572.00 in Jpmorgan High Yield on September 12, 2024 and sell it today you would earn a total of 92.00 from holding Jpmorgan High Yield or generate 16.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Franklin International Growth vs. Jpmorgan High Yield
Performance |
| Timeline |
| Franklin International |
| Jpmorgan High Yield |
Franklin International and Jpmorgan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin International and Jpmorgan High
The main advantage of trading using opposite Franklin International and Jpmorgan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin International position performs unexpectedly, Jpmorgan 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 Jpmorgan High will offset losses from the drop in Jpmorgan High's long position.| Franklin International vs. Jpmorgan High Yield | Franklin International vs. Janus High Yield Fund | Franklin International vs. T Rowe Price | Franklin International vs. Neuberger Berman Income |
| Jpmorgan High vs. SCOR PK | Jpmorgan High vs. Morningstar Unconstrained Allocation | Jpmorgan High vs. Via Renewables | Jpmorgan High vs. Bondbloxx ETF Trust |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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