Correlation Between Mirova Global and Franklin High
Can any of the company-specific risk be diversified away by investing in both Mirova Global 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 Mirova Global and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirova Global Green and Franklin High Income, you can compare the effects of market volatilities on Mirova Global 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 Mirova Global with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirova Global and Franklin High.
Diversification Opportunities for Mirova Global and Franklin High
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirova and Franklin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mirova Global Green and Franklin High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Income and Mirova Global 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 Mirova Global Green 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 Income has no effect on the direction of Mirova Global i.e., Mirova Global and Franklin High go up and down completely randomly.
Pair Corralation between Mirova Global and Franklin High
Assuming the 90 days horizon Mirova Global is expected to generate 1.26 times less return on investment than Franklin High. In addition to that, Mirova Global is 1.1 times more volatile than Franklin High Income. It trades about 0.12 of its total potential returns per unit of risk. Franklin High Income is currently generating about 0.16 per unit of volatility. If you would invest 165.00 in Franklin High Income on September 20, 2024 and sell it today you would earn a total of 11.00 from holding Franklin High Income or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirova Global Green vs. Franklin High Income
Performance |
| Timeline |
| Mirova Global Green |
| Franklin High Income |
Mirova Global and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirova Global and Franklin High
The main advantage of trading using opposite Mirova Global and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirova Global 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.| Mirova Global vs. Calamos Dynamic Convertible | Mirova Global vs. Allianzgi Convertible Income | Mirova Global vs. Advent Claymore Convertible | Mirova Global vs. Rationalpier 88 Convertible |
| Franklin High vs. Qs Global Equity | Franklin High vs. Mirova Global Green | Franklin High vs. Doubleline Global Bond | Franklin High vs. Legg Mason Global |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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