Correlation Between Mackenzie Aggregate and Franklin Global
Can any of the company-specific risk be diversified away by investing in both Mackenzie Aggregate and Franklin Global 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 Mackenzie Aggregate and Franklin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mackenzie Aggregate Bond and Franklin Global Aggregate, you can compare the effects of market volatilities on Mackenzie Aggregate and Franklin Global 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 Mackenzie Aggregate with a short position of Franklin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mackenzie Aggregate and Franklin Global.
Diversification Opportunities for Mackenzie Aggregate and Franklin Global
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mackenzie and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Aggregate Bond and Franklin Global Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Global Aggregate and Mackenzie Aggregate 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 Mackenzie Aggregate Bond are associated (or correlated) with Franklin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Global Aggregate has no effect on the direction of Mackenzie Aggregate i.e., Mackenzie Aggregate and Franklin Global go up and down completely randomly.
Pair Corralation between Mackenzie Aggregate and Franklin Global
Assuming the 90 days trading horizon Mackenzie Aggregate Bond is expected to generate 1.5 times more return on investment than Franklin Global. However, Mackenzie Aggregate is 1.5 times more volatile than Franklin Global Aggregate. It trades about 0.16 of its potential returns per unit of risk. Franklin Global Aggregate is currently generating about 0.17 per unit of risk. If you would invest 8,133 in Mackenzie Aggregate Bond on September 1, 2024 and sell it today you would earn a total of 136.00 from holding Mackenzie Aggregate Bond or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mackenzie Aggregate Bond vs. Franklin Global Aggregate
Performance |
| Timeline |
| Mackenzie Aggregate Bond |
| Franklin Global Aggregate |
Mackenzie Aggregate and Franklin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mackenzie Aggregate and Franklin Global
The main advantage of trading using opposite Mackenzie Aggregate and Franklin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mackenzie Aggregate position performs unexpectedly, Franklin Global 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 Global will offset losses from the drop in Franklin Global's long position.| Mackenzie Aggregate vs. PIMCO Global Short | Mackenzie Aggregate vs. Mackenzie Core Plus | Mackenzie Aggregate vs. Mackenzie Global Fixed |
| Franklin Global vs. Franklin Bissett Corporate | Franklin Global vs. Mackenzie Core Plus | Franklin Global vs. Franklin Global Dividend | Franklin Global vs. Franklin Large Cap |
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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