Correlation Between Allianzgi Convertible and Franklin High
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible 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 Allianzgi Convertible and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Franklin High Income, you can compare the effects of market volatilities on Allianzgi Convertible 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 Allianzgi Convertible with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Franklin High.
Diversification Opportunities for Allianzgi Convertible and Franklin High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allianzgi and Franklin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Franklin High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Income and Allianzgi Convertible 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 Allianzgi Convertible Income 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 Income has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Franklin High go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Franklin High
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 2.84 times more return on investment than Franklin High. However, Allianzgi Convertible is 2.84 times more volatile than Franklin High Income. It trades about 0.28 of its potential returns per unit of risk. Franklin High Income is currently generating about 0.12 per unit of risk. If you would invest 391.00 in Allianzgi Convertible Income on September 14, 2024 and sell it today you would earn a total of 14.00 from holding Allianzgi Convertible Income or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Franklin High Income
Performance |
| Timeline |
| Allianzgi Convertible |
| Franklin High Income |
Allianzgi Convertible and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Franklin High
The main advantage of trading using opposite Allianzgi Convertible and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible 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.| Allianzgi Convertible vs. Western Asset Diversified | Allianzgi Convertible vs. Oaktree Diversifiedome | Allianzgi Convertible vs. Pimco Diversified Income | Allianzgi Convertible vs. Davenport Small Cap |
| Franklin High vs. Money Market Obligations | Franklin High vs. Ab Government Exchange | Franklin High vs. Schwab Treasury Money | Franklin High vs. Putnam Money Market |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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