Correlation Between Franklin Mutual and Voya Bond
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Voya Bond 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 Franklin Mutual and Voya Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Voya Bond Index, you can compare the effects of market volatilities on Franklin Mutual and Voya Bond 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 Franklin Mutual with a short position of Voya Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Voya Bond.
Diversification Opportunities for Franklin Mutual and Voya Bond
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Voya is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index and Franklin Mutual 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 Franklin Mutual Global are associated (or correlated) with Voya Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Voya Bond go up and down completely randomly.
Pair Corralation between Franklin Mutual and Voya Bond
Assuming the 90 days horizon Franklin Mutual is expected to generate 4.72 times less return on investment than Voya Bond. In addition to that, Franklin Mutual is 1.43 times more volatile than Voya Bond Index. It trades about 0.02 of its total potential returns per unit of risk. Voya Bond Index is currently generating about 0.11 per unit of volatility. If you would invest 897.00 in Voya Bond Index on September 15, 2024 and sell it today you would earn a total of 6.00 from holding Voya Bond Index or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Voya Bond Index
Performance |
| Timeline |
| Franklin Mutual Global |
| Voya Bond Index |
Franklin Mutual and Voya Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Voya Bond
The main advantage of trading using opposite Franklin Mutual and Voya Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Voya Bond 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 Voya Bond will offset losses from the drop in Voya Bond's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
| Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Bond Index | Voya Bond vs. Voya Limited Maturity | Voya Bond vs. Voya Limited Maturity |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |