Correlation Between Franklin Templeton and IHIT
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and IHIT 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 Templeton and IHIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton Limited and IHIT, you can compare the effects of market volatilities on Franklin Templeton and IHIT 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 Templeton with a short position of IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and IHIT.
Diversification Opportunities for Franklin Templeton and IHIT
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and IHIT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Limited and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT and Franklin Templeton 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 Templeton Limited are associated (or correlated) with IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and IHIT go up and down completely randomly.
Pair Corralation between Franklin Templeton and IHIT
If you would invest 653.00 in Franklin Templeton Limited on November 3, 2024 and sell it today you would earn a total of 12.00 from holding Franklin Templeton Limited or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Franklin Templeton Limited vs. IHIT
Performance |
| Timeline |
| Franklin Templeton |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Templeton and IHIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and IHIT
The main advantage of trading using opposite Franklin Templeton and IHIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, IHIT 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 IHIT will offset losses from the drop in IHIT's long position.| Franklin Templeton vs. MFS Investment Grade | Franklin Templeton vs. Eaton Vance National | Franklin Templeton vs. Rivernorth Opportunistic Municipalome | Franklin Templeton vs. RiverNorth Managed Duration |
| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Nuveen California Select | IHIT vs. Federated Premier Municipal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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