Correlation Between Mainstay Growth and Franklin Natural
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Franklin Natural 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 Growth and Franklin Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Growth Etf and Franklin Natural Resources, you can compare the effects of market volatilities on Mainstay Growth and Franklin Natural 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 Growth with a short position of Franklin Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Franklin Natural.
Diversification Opportunities for Mainstay Growth and Franklin Natural
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Franklin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Franklin Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Natural Res and Mainstay Growth 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 Growth Etf are associated (or correlated) with Franklin Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Natural Res has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Franklin Natural go up and down completely randomly.
Pair Corralation between Mainstay Growth and Franklin Natural
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 0.49 times more return on investment than Franklin Natural. However, Mainstay Growth Etf is 2.06 times less risky than Franklin Natural. It trades about 0.09 of its potential returns per unit of risk. Franklin Natural Resources is currently generating about -0.1 per unit of risk. If you would invest 1,489 in Mainstay Growth Etf on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Mainstay Growth Etf or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Franklin Natural Resources
Performance |
| Timeline |
| Mainstay Growth Etf |
| Franklin Natural Res |
Mainstay Growth and Franklin Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Franklin Natural
The main advantage of trading using opposite Mainstay Growth and Franklin Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Franklin Natural 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 Natural will offset losses from the drop in Franklin Natural's long position.| Mainstay Growth vs. Shelton Emerging Markets | Mainstay Growth vs. Black Oak Emerging | Mainstay Growth vs. Vy Jpmorgan Emerging | Mainstay Growth vs. Pnc Emerging Markets |
| Franklin Natural vs. Vanguard Financials Index | Franklin Natural vs. Prudential Jennison Financial | Franklin Natural vs. John Hancock Financial | Franklin Natural vs. Mesirow Financial Small |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |