Correlation Between Franklin Strategic and Artisan High
Can any of the company-specific risk be diversified away by investing in both Franklin Strategic and Artisan 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 Strategic and Artisan High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Strategic Income and Artisan High Income, you can compare the effects of market volatilities on Franklin Strategic and Artisan 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 Strategic with a short position of Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Strategic and Artisan High.
Diversification Opportunities for Franklin Strategic and Artisan High
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Artisan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Strategic Income and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High Income and Franklin Strategic 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 Strategic Income are associated (or correlated) with Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Franklin Strategic i.e., Franklin Strategic and Artisan High go up and down completely randomly.
Pair Corralation between Franklin Strategic and Artisan High
Assuming the 90 days horizon Franklin Strategic Income is expected to generate 3.22 times more return on investment than Artisan High. However, Franklin Strategic is 3.22 times more volatile than Artisan High Income. It trades about 0.08 of its potential returns per unit of risk. Artisan High Income is currently generating about 0.25 per unit of risk. If you would invest 832.00 in Franklin Strategic Income on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Franklin Strategic Income or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Strategic Income vs. Artisan High Income
Performance |
| Timeline |
| Franklin Strategic Income |
| Artisan High Income |
Franklin Strategic and Artisan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Strategic and Artisan High
The main advantage of trading using opposite Franklin Strategic and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Strategic position performs unexpectedly, Artisan 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 Artisan High will offset losses from the drop in Artisan High's long position.| Franklin Strategic vs. Franklin Mutual Beacon | Franklin Strategic vs. Templeton Developing Markets | Franklin Strategic vs. Franklin Mutual Global | Franklin Strategic vs. Franklin Mutual Global |
| Artisan High vs. Dreyfus Natural Resources | Artisan High vs. Gamco Natural Resources | Artisan High vs. Hennessy Bp Energy | Artisan High vs. Calvert Global Energy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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