Correlation Between Simt Multi-asset and Franklin High
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset 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 Simt Multi-asset and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Franklin High Yield, you can compare the effects of market volatilities on Simt Multi-asset 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 Simt Multi-asset with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Franklin High.
Diversification Opportunities for Simt Multi-asset and Franklin High
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Simt and Franklin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Franklin High go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Franklin High
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.88 times more return on investment than Franklin High. However, Simt Multi Asset Inflation is 1.13 times less risky than Franklin High. It trades about 0.55 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.07 per unit of risk. If you would invest 763.00 in Simt Multi Asset Inflation on October 25, 2024 and sell it today you would earn a total of 17.00 from holding Simt Multi Asset Inflation or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Franklin High Yield
Performance |
| Timeline |
| Simt Multi Asset |
| Franklin High Yield |
Simt Multi-asset and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Franklin High
The main advantage of trading using opposite Simt Multi-asset and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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.| Simt Multi-asset vs. Blackrock Health Sciences | Simt Multi-asset vs. Eventide Healthcare Life | Simt Multi-asset vs. Alphacentric Lifesci Healthcare | Simt Multi-asset vs. Alger Health Sciences |
| Franklin High vs. Inflation Protected Bond Fund | Franklin High vs. Lord Abbett Inflation | Franklin High vs. Simt Multi Asset Inflation | Franklin High vs. Tiaa Cref Inflation Link |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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