Correlation Between CI Enhanced and Franklin Global
Can any of the company-specific risk be diversified away by investing in both CI Enhanced and Franklin Global 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 CI Enhanced and Franklin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Enhanced Short and Franklin Global Aggregate, you can compare the effects of market volatilities on CI Enhanced and Franklin Global 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 CI Enhanced with a short position of Franklin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Enhanced and Franklin Global.
Diversification Opportunities for CI Enhanced and Franklin Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSB and Franklin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CI Enhanced Short and Franklin Global Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Global Aggregate and CI Enhanced 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 CI Enhanced Short are associated (or correlated) with Franklin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Global Aggregate has no effect on the direction of CI Enhanced i.e., CI Enhanced and Franklin Global go up and down completely randomly.
Pair Corralation between CI Enhanced and Franklin Global
Assuming the 90 days trading horizon CI Enhanced Short is expected to generate 0.46 times more return on investment than Franklin Global. However, CI Enhanced Short is 2.17 times less risky than Franklin Global. It trades about 0.16 of its potential returns per unit of risk. Franklin Global Aggregate is currently generating about 0.04 per unit of risk. If you would invest 842.00 in CI Enhanced Short on August 29, 2024 and sell it today you would earn a total of 124.00 from holding CI Enhanced Short or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CI Enhanced Short vs. Franklin Global Aggregate
Performance |
| Timeline |
| CI Enhanced Short |
| Franklin Global Aggregate |
CI Enhanced and Franklin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Enhanced and Franklin Global
The main advantage of trading using opposite CI Enhanced and Franklin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Enhanced position performs unexpectedly, Franklin Global 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 Franklin Global will offset losses from the drop in Franklin Global's long position.| CI Enhanced vs. CI Investment Grade | CI Enhanced vs. CI Enhanced Government | CI Enhanced vs. CI Preferred Share | CI Enhanced vs. CI Short Term |
| Franklin Global vs. Mackenzie Core Plus | Franklin Global vs. Mackenzie Floating Rate | Franklin Global vs. Mackenzie Unconstrained Bond | Franklin Global vs. Mackenzie Canadian Short |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |