Correlation Between American Funds and Franklin High
Can any of the company-specific risk be diversified away by investing in both American Funds and Franklin High 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 American Funds and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Government and Franklin High Yield, you can compare the effects of market volatilities on American Funds and Franklin High 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 American Funds with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Franklin High.
Diversification Opportunities for American Funds and Franklin High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Government and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and American Funds 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 American Funds Government are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of American Funds i.e., American Funds and Franklin High go up and down completely randomly.
Pair Corralation between American Funds and Franklin High
If you would invest 100.00 in American Funds Government on October 9, 2024 and sell it today you would earn a total of 0.00 from holding American Funds Government or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
American Funds Government vs. Franklin High Yield
Performance |
| Timeline |
| American Funds Government |
| Franklin High Yield |
American Funds and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Franklin High
The main advantage of trading using opposite American Funds and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Franklin High 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 High will offset losses from the drop in Franklin High's long position.| American Funds vs. Ab Government Exchange | American Funds vs. Pioneer Money Market | American Funds vs. Ubs Money Series | American Funds vs. Schwab Government Money |
| Franklin High vs. Prudential Government Money | Franklin High vs. Ubs Money Series | Franklin High vs. Schwab Government Money | Franklin High vs. John Hancock Money |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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