Correlation Between Franklin Maryland and Barings Us
Can any of the company-specific risk be diversified away by investing in both Franklin Maryland and Barings Us 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 Maryland and Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Maryland Tax Free and Barings High Yield, you can compare the effects of market volatilities on Franklin Maryland and Barings Us 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 Maryland with a short position of Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Maryland and Barings Us.
Diversification Opportunities for Franklin Maryland and Barings Us
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Barings is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Maryland Tax Free and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield and Franklin Maryland 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 Maryland Tax Free are associated (or correlated) with Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Franklin Maryland i.e., Franklin Maryland and Barings Us go up and down completely randomly.
Pair Corralation between Franklin Maryland and Barings Us
Assuming the 90 days horizon Franklin Maryland is expected to generate 2.52 times less return on investment than Barings Us. In addition to that, Franklin Maryland is 1.31 times more volatile than Barings High Yield. It trades about 0.07 of its total potential returns per unit of risk. Barings High Yield is currently generating about 0.22 per unit of volatility. If you would invest 760.00 in Barings High Yield on October 25, 2024 and sell it today you would earn a total of 54.00 from holding Barings High Yield or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Maryland Tax Free vs. Barings High Yield
Performance |
| Timeline |
| Franklin Maryland Tax |
| Barings High Yield |
Franklin Maryland and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Maryland and Barings Us
The main advantage of trading using opposite Franklin Maryland and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Maryland position performs unexpectedly, Barings Us 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 Barings Us will offset losses from the drop in Barings Us' long position.| Franklin Maryland vs. Barings High Yield | Franklin Maryland vs. Pace High Yield | Franklin Maryland vs. Gmo High Yield | Franklin Maryland vs. Siit High Yield |
| Barings Us vs. Nuveen Mid Cap | Barings Us vs. Shelton E Value | Barings Us vs. Western Asset Adjustable | Barings Us vs. Issachar Fund Class |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |