Correlation Between Mainstay High and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Franklin Adjustable 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 Franklin Adjustable 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 Franklin Adjustable Government, you can compare the effects of market volatilities on Mainstay High and Franklin Adjustable 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 Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Franklin Adjustable.
Diversification Opportunities for Mainstay High and Franklin Adjustable
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Franklin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable 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 Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Mainstay High i.e., Mainstay High and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Mainstay High and Franklin Adjustable
If you would invest 524.00 in Mainstay High Yield on September 15, 2024 and sell it today you would earn a total of 1.00 from holding Mainstay High Yield or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Franklin Adjustable Government
Performance |
| Timeline |
| Mainstay High Yield |
| Franklin Adjustable |
Mainstay High and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Franklin Adjustable
The main advantage of trading using opposite Mainstay High and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Franklin Adjustable 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 Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Mainstay High vs. Franklin Adjustable Government | Mainstay High vs. Goldman Sachs Government | Mainstay High vs. Sit Government Securities | Mainstay High vs. Lord Abbett Government |
| Franklin Adjustable vs. Franklin Mutual Beacon | Franklin Adjustable vs. Templeton Developing Markets | Franklin Adjustable vs. Franklin Mutual Global | Franklin Adjustable vs. Franklin Mutual 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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