Correlation Between Siit Ultra and Franklin High
Can any of the company-specific risk be diversified away by investing in both Siit Ultra 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 Siit Ultra and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Ultra Short and Franklin High Yield, you can compare the effects of market volatilities on Siit Ultra 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 Siit Ultra with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Ultra and Franklin High.
Diversification Opportunities for Siit Ultra and Franklin High
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siit and Franklin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siit Ultra Short 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 Siit Ultra 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 Ultra Short 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 Siit Ultra i.e., Siit Ultra and Franklin High go up and down completely randomly.
Pair Corralation between Siit Ultra and Franklin High
Assuming the 90 days horizon Siit Ultra Short is expected to generate 0.36 times more return on investment than Franklin High. However, Siit Ultra Short is 2.75 times less risky than Franklin High. It trades about 0.21 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.05 per unit of risk. If you would invest 895.00 in Siit Ultra Short on October 25, 2024 and sell it today you would earn a total of 101.00 from holding Siit Ultra Short or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siit Ultra Short vs. Franklin High Yield
Performance |
| Timeline |
| Siit Ultra Short |
| Franklin High Yield |
Siit Ultra and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Ultra and Franklin High
The main advantage of trading using opposite Siit Ultra and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Ultra 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.| Siit Ultra vs. Hsbc Treasury Money | Siit Ultra vs. Vanguard Money Market | Siit Ultra vs. Dws Government Money | Siit Ultra vs. Franklin Government Money |
| Franklin High vs. Growth Strategy Fund | Franklin High vs. Ashmore Emerging Markets | Franklin High vs. Commodities Strategy Fund | Franklin High vs. Western Assets Emerging |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |