Correlation Between Mainstay and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Mainstay 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 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 Sp 500 and Franklin Adjustable Government, you can compare the effects of market volatilities on Mainstay 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 with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay and Franklin Adjustable.
Diversification Opportunities for Mainstay and Franklin Adjustable
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Franklin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Sp 500 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 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 Sp 500 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 i.e., Mainstay and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Mainstay and Franklin Adjustable
Assuming the 90 days horizon Mainstay Sp 500 is expected to under-perform the Franklin Adjustable. In addition to that, Mainstay is 6.71 times more volatile than Franklin Adjustable Government. It trades about -0.03 of its total potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.26 per unit of volatility. If you would invest 751.00 in Franklin Adjustable Government on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Franklin Adjustable Government or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Sp 500 vs. Franklin Adjustable Government
Performance |
| Timeline |
| Mainstay Sp 500 |
| Franklin Adjustable |
Mainstay and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay and Franklin Adjustable
The main advantage of trading using opposite Mainstay and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay 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 vs. Gmo High Yield | Mainstay vs. Aqr Alternative Risk | Mainstay vs. Virtus High Yield | Mainstay vs. Pace High Yield |
| Franklin Adjustable vs. Goldman Sachs Bond | Franklin Adjustable vs. Bbh Intermediate Municipal | Franklin Adjustable vs. Ab Bond Inflation | Franklin Adjustable vs. Ambrus Core Bond |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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