Correlation Between Western Asset and Franklin New
Can any of the company-specific risk be diversified away by investing in both Western Asset and Franklin New 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 Western Asset and Franklin New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Total and Franklin New Jersey, you can compare the effects of market volatilities on Western Asset and Franklin New 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 Western Asset with a short position of Franklin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Franklin New.
Diversification Opportunities for Western Asset and Franklin New
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Total and Franklin New Jersey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin New Jersey and Western 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 Western Asset Total are associated (or correlated) with Franklin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin New Jersey has no effect on the direction of Western Asset i.e., Western Asset and Franklin New go up and down completely randomly.
Pair Corralation between Western Asset and Franklin New
If you would invest 1,032 in Franklin New Jersey on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Franklin New Jersey or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Western Asset Total vs. Franklin New Jersey
Performance |
| Timeline |
| Western Asset Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Franklin New Jersey |
Western Asset and Franklin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Franklin New
The main advantage of trading using opposite Western Asset and Franklin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset position performs unexpectedly, Franklin New 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 New will offset losses from the drop in Franklin New's long position.| Western Asset vs. Boston Partners Small | Western Asset vs. Ultramid Cap Profund Ultramid Cap | Western Asset vs. Great West Loomis Sayles | Western Asset vs. American Century Etf |
| Franklin New vs. Qs Large Cap | Franklin New vs. Scharf Global Opportunity | Franklin New vs. Western Asset Municipal | Franklin New vs. Volumetric Fund Volumetric |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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