Correlation Between Siit High and Franklin Equity
Can any of the company-specific risk be diversified away by investing in both Siit High and Franklin Equity 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 Siit High and Franklin Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Franklin Equity Income, you can compare the effects of market volatilities on Siit High and Franklin Equity 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 Siit High with a short position of Franklin Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Franklin Equity.
Diversification Opportunities for Siit High and Franklin Equity
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siit and Franklin is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Franklin Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Equity Income and Siit 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 Siit High Yield are associated (or correlated) with Franklin Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Equity Income has no effect on the direction of Siit High i.e., Siit High and Franklin Equity go up and down completely randomly.
Pair Corralation between Siit High and Franklin Equity
Assuming the 90 days horizon Siit High Yield is expected to generate 0.17 times more return on investment than Franklin Equity. However, Siit High Yield is 5.75 times less risky than Franklin Equity. It trades about 0.07 of its potential returns per unit of risk. Franklin Equity Income is currently generating about -0.24 per unit of risk. If you would invest 711.00 in Siit High Yield on October 17, 2024 and sell it today you would earn a total of 3.00 from holding Siit High Yield or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Franklin Equity Income
Performance |
| Timeline |
| Siit High Yield |
| Franklin Equity Income |
Siit High and Franklin Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Franklin Equity
The main advantage of trading using opposite Siit High and Franklin Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Franklin Equity 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 Equity will offset losses from the drop in Franklin Equity's long position.| Siit High vs. Great West Goldman Sachs | Siit High vs. World Precious Minerals | Siit High vs. Franklin Gold Precious | Siit High vs. Global Gold Fund |
| Franklin Equity vs. Fidelity Capital Income | Franklin Equity vs. Siit High Yield | Franklin Equity vs. Msift High Yield | Franklin Equity vs. Guggenheim High Yield |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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