Correlation Between Franklin Rising and Thrivent High
Can any of the company-specific risk be diversified away by investing in both Franklin Rising and Thrivent 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 Rising and Thrivent High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Rising Dividends and Thrivent High Yield, you can compare the effects of market volatilities on Franklin Rising and Thrivent 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 Rising with a short position of Thrivent High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Rising and Thrivent High.
Diversification Opportunities for Franklin Rising and Thrivent High
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Thrivent is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Rising Dividends and Thrivent High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent High Yield and Franklin Rising 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 Rising Dividends are associated (or correlated) with Thrivent High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent High Yield has no effect on the direction of Franklin Rising i.e., Franklin Rising and Thrivent High go up and down completely randomly.
Pair Corralation between Franklin Rising and Thrivent High
Assuming the 90 days horizon Franklin Rising Dividends is expected to generate 4.68 times more return on investment than Thrivent High. However, Franklin Rising is 4.68 times more volatile than Thrivent High Yield. It trades about 0.17 of its potential returns per unit of risk. Thrivent High Yield is currently generating about 0.27 per unit of risk. If you would invest 9,932 in Franklin Rising Dividends on August 31, 2024 and sell it today you would earn a total of 262.00 from holding Franklin Rising Dividends or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Rising Dividends vs. Thrivent High Yield
Performance |
| Timeline |
| Franklin Rising Dividends |
| Thrivent High Yield |
Franklin Rising and Thrivent High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Rising and Thrivent High
The main advantage of trading using opposite Franklin Rising and Thrivent High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Rising position performs unexpectedly, Thrivent 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 Thrivent High will offset losses from the drop in Thrivent High's long position.| Franklin Rising vs. Franklin Mutual Global | Franklin Rising vs. Franklin Growth Fund | Franklin Rising vs. Franklin Dynatech Fund | Franklin Rising vs. Franklin Strategic Income |
| Thrivent High vs. Thrivent Income Fund | Thrivent High vs. HUMANA INC | Thrivent High vs. SCOR PK | Thrivent High vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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