Correlation Between Franklin Vertible and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Franklin Vertible 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 Vertible 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 Vertible Securities and Mainstay Vertible Fund, you can compare the effects of market volatilities on Franklin Vertible 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 Vertible with a short position of Mainstay Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Vertible and Mainstay Vertible.
Diversification Opportunities for Franklin Vertible and Mainstay Vertible
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities 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 Vertible 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 Vertible Securities 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 Vertible i.e., Franklin Vertible and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Franklin Vertible and Mainstay Vertible
Assuming the 90 days horizon Franklin Vertible Securities is expected to generate 1.05 times more return on investment than Mainstay Vertible. However, Franklin Vertible is 1.05 times more volatile than Mainstay Vertible Fund. It trades about 0.17 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.11 per unit of risk. If you would invest 2,327 in Franklin Vertible Securities on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Franklin Vertible Securities or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Franklin Vertible |
| Mainstay Vertible |
Franklin Vertible and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Vertible and Mainstay Vertible
The main advantage of trading using opposite Franklin Vertible and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Vertible 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 Vertible vs. Franklin High Yield | Franklin Vertible vs. Ishares Municipal Bond | Franklin Vertible vs. Alliancebernstein Bond | Franklin Vertible vs. Pace High Yield |
| Mainstay Vertible vs. Mainstay High Yield | Mainstay Vertible vs. Mainstay Income Builder | Mainstay Vertible vs. Mainstay Sp 500 | Mainstay Vertible vs. Mainstay Large Cap |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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