Correlation Between Mainstay High and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Ftfa Franklin 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 Mainstay High and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Mainstay High and Ftfa Franklin 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 Mainstay High with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Ftfa Franklin.
Diversification Opportunities for Mainstay High and Ftfa Franklin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Ftfa is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Mainstay High 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 Mainstay High Yield are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Mainstay High i.e., Mainstay High and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Mainstay High and Ftfa Franklin
Assuming the 90 days horizon Mainstay High is expected to generate 4.3 times less return on investment than Ftfa Franklin. But when comparing it to its historical volatility, Mainstay High Yield is 2.97 times less risky than Ftfa Franklin. It trades about 0.06 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,103 in Ftfa Franklin Templeton Growth on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Ftfa Franklin Templeton Growth or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Mainstay High Yield |
| Ftfa Franklin Templeton |
Mainstay High and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Ftfa Franklin
The main advantage of trading using opposite Mainstay High and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.| Mainstay High vs. Hewitt Money Market | Mainstay High vs. Edward Jones Money | Mainstay High vs. Dws Government Money | Mainstay High vs. Schwab Treasury Money |
| Ftfa Franklin vs. Ashmore Emerging Markets | Ftfa Franklin vs. Rbc Emerging Markets | Ftfa Franklin vs. Shelton Emerging Markets | Ftfa Franklin vs. Investec Emerging Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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