Correlation Between Virtus High and Franklin Founding
Can any of the company-specific risk be diversified away by investing in both Virtus High and Franklin Founding 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 Virtus High and Franklin Founding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus High Yield and Franklin Founding Funds, you can compare the effects of market volatilities on Virtus High and Franklin Founding 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 Virtus High with a short position of Franklin Founding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus High and Franklin Founding.
Diversification Opportunities for Virtus High and Franklin Founding
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Virtus and Franklin is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Virtus High Yield and Franklin Founding Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Founding Funds and Virtus 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 Virtus High Yield are associated (or correlated) with Franklin Founding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Founding Funds has no effect on the direction of Virtus High i.e., Virtus High and Franklin Founding go up and down completely randomly.
Pair Corralation between Virtus High and Franklin Founding
Assuming the 90 days horizon Virtus High Yield is expected to generate 0.45 times more return on investment than Franklin Founding. However, Virtus High Yield is 2.23 times less risky than Franklin Founding. It trades about 0.17 of its potential returns per unit of risk. Franklin Founding Funds is currently generating about 0.07 per unit of risk. If you would invest 357.00 in Virtus High Yield on October 25, 2024 and sell it today you would earn a total of 32.00 from holding Virtus High Yield or generate 8.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Virtus High Yield vs. Franklin Founding Funds
Performance |
Timeline |
Virtus High Yield |
Franklin Founding Funds |
Virtus High and Franklin Founding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Virtus High and Franklin Founding
The main advantage of trading using opposite Virtus High and Franklin Founding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus High position performs unexpectedly, Franklin Founding 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 Founding will offset losses from the drop in Franklin Founding's long position.Virtus High vs. Guidemark Large Cap | Virtus High vs. Calvert Moderate Allocation | Virtus High vs. T Rowe Price | Virtus High vs. Franklin Moderate Allocation |
Franklin Founding vs. Tfa Quantitative | Franklin Founding vs. Rational Dividend Capture | Franklin Founding vs. T Rowe Price | Franklin Founding vs. T Rowe Price |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |