Correlation Between Franklin Real and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Mainstay Vertible 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 Real and Mainstay Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Mainstay Vertible Fund, you can compare the effects of market volatilities on Franklin Real and Mainstay Vertible 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 Real with a short position of Mainstay Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Mainstay Vertible.
Diversification Opportunities for Franklin Real and Mainstay Vertible
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Mainstay is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Vertible and Franklin Real 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 Real Estate are associated (or correlated) with Mainstay Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Vertible has no effect on the direction of Franklin Real i.e., Franklin Real and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Franklin Real and Mainstay Vertible
Assuming the 90 days horizon Franklin Real is expected to generate 1.06 times less return on investment than Mainstay Vertible. In addition to that, Franklin Real is 1.51 times more volatile than Mainstay Vertible Fund. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.06 per unit of volatility. If you would invest 1,919 in Mainstay Vertible Fund on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Mainstay Vertible Fund or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Real Estate vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Franklin Real Estate |
| Mainstay Vertible |
Franklin Real and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Mainstay Vertible
The main advantage of trading using opposite Franklin Real and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Mainstay Vertible 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 Mainstay Vertible will offset losses from the drop in Mainstay Vertible's long position.| Franklin Real vs. Guggenheim Risk Managed | Franklin Real vs. HUMANA INC | Franklin Real vs. Barloworld Ltd ADR | Franklin Real vs. Morningstar Unconstrained Allocation |
| Mainstay Vertible vs. Franklin Real Estate | Mainstay Vertible vs. Fidelity Real Estate | Mainstay Vertible vs. Virtus Real Estate | Mainstay Vertible vs. Amg Managers Centersquare |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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