Correlation Between Mainstay Cbre and Franklin High
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre 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 Mainstay Cbre and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cbre Global and Franklin High Yield, you can compare the effects of market volatilities on Mainstay Cbre 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 Mainstay Cbre with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Franklin High.
Diversification Opportunities for Mainstay Cbre and Franklin High
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Franklin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global 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 Mainstay Cbre 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 Mainstay Cbre Global 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 Mainstay Cbre i.e., Mainstay Cbre and Franklin High go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Franklin High
Assuming the 90 days horizon Mainstay Cbre Global is expected to generate 1.8 times more return on investment than Franklin High. However, Mainstay Cbre is 1.8 times more volatile than Franklin High Yield. It trades about 0.21 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.17 per unit of risk. If you would invest 1,342 in Mainstay Cbre Global on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Mainstay Cbre Global or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mainstay Cbre Global vs. Franklin High Yield
Performance |
| Timeline |
| Mainstay Cbre Global |
| Franklin High Yield |
Mainstay Cbre and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Franklin High
The main advantage of trading using opposite Mainstay Cbre and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre 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.| Mainstay Cbre vs. Mainstay Tax Free | Mainstay Cbre vs. Mainstay Large Cap | Mainstay Cbre vs. Mainstay Large Cap | Mainstay Cbre vs. Mainstay Large Cap |
| Franklin High vs. Franklin Mutual Beacon | Franklin High vs. Templeton Developing Markets | Franklin High vs. Franklin Mutual Global | Franklin High vs. Franklin Mutual Global |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |