Correlation Between Allianzgi Convertible and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Franklin Growth 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 Growth 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 Growth Fund, you can compare the effects of market volatilities on Allianzgi Convertible and Franklin Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Franklin Growth.
Diversification Opportunities for Allianzgi Convertible and Franklin Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Franklin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Franklin Growth go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Franklin Growth
Assuming the 90 days horizon Allianzgi Convertible is expected to generate 1.5 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Allianzgi Convertible Income is 1.3 times less risky than Franklin Growth. It trades about 0.08 of its potential returns per unit of risk. Franklin Growth Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,133 in Franklin Growth Fund on September 14, 2024 and sell it today you would earn a total of 4,968 from holding Franklin Growth Fund or generate 49.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Franklin Growth Fund
Performance |
| Timeline |
| Allianzgi Convertible |
| Franklin Growth |
Allianzgi Convertible and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Franklin Growth
The main advantage of trading using opposite Allianzgi Convertible and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth'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 Growth vs. Allianzgi Convertible Income | Franklin Growth vs. Fidelity Sai Convertible | Franklin Growth vs. Lord Abbett Convertible | Franklin Growth vs. Putnam Convertible Incm Gwth |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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