Correlation Between Leggmason Partners and Franklin High
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners and Franklin 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 Leggmason Partners and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Franklin High Yield, you can compare the effects of market volatilities on Leggmason Partners and Franklin 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 Leggmason Partners with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Franklin High.
Diversification Opportunities for Leggmason Partners and Franklin High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leggmason and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and Leggmason Partners 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 Leggmason Partners Institutional are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Franklin High go up and down completely randomly.
Pair Corralation between Leggmason Partners and Franklin High
If you would invest 922.00 in Franklin High Yield on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Franklin High Yield or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Franklin High Yield
Performance |
| Timeline |
| Leggmason Partners |
| Franklin High Yield |
Leggmason Partners and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Franklin High
The main advantage of trading using opposite Leggmason Partners and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners position performs unexpectedly, Franklin 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 Franklin High will offset losses from the drop in Franklin High's long position.| Leggmason Partners vs. Short Precious Metals | Leggmason Partners vs. Vy Goldman Sachs | Leggmason Partners vs. Precious Metals And | Leggmason Partners vs. Fidelity Advisor Gold |
| Franklin High vs. Red Oak Technology | Franklin High vs. Leggmason Partners Institutional | Franklin High vs. Arrow Managed Futures | Franklin High vs. Balanced Fund Investor |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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