Correlation Between Franklin High and Destinations Global
Can any of the company-specific risk be diversified away by investing in both Franklin High and Destinations Global 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 Franklin High and Destinations Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Yield and Destinations Global Fixed, you can compare the effects of market volatilities on Franklin High and Destinations Global 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 Franklin High with a short position of Destinations Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Destinations Global.
Diversification Opportunities for Franklin High and Destinations Global
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Destinations is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Destinations Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Destinations Global Fixed and Franklin 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 Franklin High Yield are associated (or correlated) with Destinations Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Destinations Global Fixed has no effect on the direction of Franklin High i.e., Franklin High and Destinations Global go up and down completely randomly.
Pair Corralation between Franklin High and Destinations Global
Assuming the 90 days horizon Franklin High Yield is expected to generate 1.15 times more return on investment than Destinations Global. However, Franklin High is 1.15 times more volatile than Destinations Global Fixed. It trades about 0.0 of its potential returns per unit of risk. Destinations Global Fixed is currently generating about -0.05 per unit of risk. If you would invest 922.00 in Franklin High Yield on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Franklin High Yield or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Franklin High Yield vs. Destinations Global Fixed
Performance |
Timeline |
Franklin High Yield |
Destinations Global Fixed |
Franklin High and Destinations Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin High and Destinations Global
The main advantage of trading using opposite Franklin High and Destinations Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Destinations Global 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 Destinations Global will offset losses from the drop in Destinations Global's long position.Franklin High vs. Red Oak Technology | Franklin High vs. Leggmason Partners Institutional | Franklin High vs. Arrow Managed Futures | Franklin High vs. Balanced Fund Investor |
Destinations Global vs. Dreyfusstandish Global Fixed | Destinations Global vs. Franklin High Yield | Destinations Global vs. T Rowe Price | Destinations Global vs. Blrc Sgy Mnp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Money Managers Screen money managers from public funds and ETFs managed around the world |