Correlation Between Hywin Holdings and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Hywin Holdings and Franklin Templeton 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 Hywin Holdings and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hywin Holdings and Franklin Templeton Limited, you can compare the effects of market volatilities on Hywin Holdings and Franklin Templeton 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 Hywin Holdings with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hywin Holdings and Franklin Templeton.
Diversification Opportunities for Hywin Holdings and Franklin Templeton
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hywin and Franklin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hywin Holdings and Franklin Templeton Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and Hywin Holdings 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 Hywin Holdings are associated (or correlated) with Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton has no effect on the direction of Hywin Holdings i.e., Hywin Holdings and Franklin Templeton go up and down completely randomly.
Pair Corralation between Hywin Holdings and Franklin Templeton
Considering the 90-day investment horizon Hywin Holdings is expected to under-perform the Franklin Templeton. In addition to that, Hywin Holdings is 31.36 times more volatile than Franklin Templeton Limited. It trades about -0.23 of its total potential returns per unit of risk. Franklin Templeton Limited is currently generating about 0.14 per unit of volatility. If you would invest 596.00 in Franklin Templeton Limited on August 31, 2024 and sell it today you would earn a total of 68.00 from holding Franklin Templeton Limited or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 26.77% |
| Values | Daily Returns |
Hywin Holdings vs. Franklin Templeton Limited
Performance |
| Timeline |
| Hywin Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Templeton |
Hywin Holdings and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hywin Holdings and Franklin Templeton
The main advantage of trading using opposite Hywin Holdings and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hywin Holdings position performs unexpectedly, Franklin Templeton 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 Templeton will offset losses from the drop in Franklin Templeton's long position.| Hywin Holdings vs. MFS Investment Grade | Hywin Holdings vs. Invesco High Income | Hywin Holdings vs. Eaton Vance National | Hywin Holdings vs. Nuveen California Select |
| Franklin Templeton vs. MFS Investment Grade | Franklin Templeton vs. Invesco High Income | Franklin Templeton vs. Eaton Vance National | Franklin Templeton vs. Rivernorth Opportunistic Municipalome |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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