Correlation Between Jhancock Short and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Jhancock Short and Franklin Mutual 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 Jhancock Short and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Short Duration and Franklin Mutual Global, you can compare the effects of market volatilities on Jhancock Short and Franklin Mutual 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 Jhancock Short with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Short and Franklin Mutual.
Diversification Opportunities for Jhancock Short and Franklin Mutual
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jhancock and Franklin is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Short Duration and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Jhancock Short 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 Jhancock Short Duration are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Jhancock Short i.e., Jhancock Short and Franklin Mutual go up and down completely randomly.
Pair Corralation between Jhancock Short and Franklin Mutual
Assuming the 90 days horizon Jhancock Short is expected to generate 13.81 times less return on investment than Franklin Mutual. But when comparing it to its historical volatility, Jhancock Short Duration is 7.34 times less risky than Franklin Mutual. It trades about 0.17 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 2,826 in Franklin Mutual Global on November 8, 2024 and sell it today you would earn a total of 127.00 from holding Franklin Mutual Global or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Short Duration vs. Franklin Mutual Global
Performance |
| Timeline |
| Jhancock Short Duration |
| Franklin Mutual Global |
Jhancock Short and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Short and Franklin Mutual
The main advantage of trading using opposite Jhancock Short and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Short position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Jhancock Short vs. Goldman Sachs Short | Jhancock Short vs. Siit High Yield | Jhancock Short vs. Artisan High Income | Jhancock Short vs. Morningstar Defensive Bond |
| Franklin Mutual vs. Tiaa Cref Real Estate | Franklin Mutual vs. Rreef Property Trust | Franklin Mutual vs. Texton Property | Franklin Mutual vs. Nexpoint Real Estate |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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