Correlation Between Doubleline Yield and Franklin High
Can any of the company-specific risk be diversified away by investing in both Doubleline Yield 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 Doubleline Yield and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubleline Yield Opportunities and Franklin High Yield, you can compare the effects of market volatilities on Doubleline Yield 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 Doubleline Yield with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Yield and Franklin High.
Diversification Opportunities for Doubleline Yield and Franklin High
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubleline and Franklin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Yield Opportunities and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and Doubleline Yield 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 Doubleline Yield Opportunities 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 Yield has no effect on the direction of Doubleline Yield i.e., Doubleline Yield and Franklin High go up and down completely randomly.
Pair Corralation between Doubleline Yield and Franklin High
Assuming the 90 days horizon Doubleline Yield Opportunities is expected to under-perform the Franklin High. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Yield Opportunities is 1.41 times less risky than Franklin High. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Franklin High Yield is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 923.00 in Franklin High Yield on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Franklin High Yield or generate 0.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Doubleline Yield Opportunities vs. Franklin High Yield
Performance |
Timeline |
Doubleline Yield Opp |
Franklin High Yield |
Doubleline Yield and Franklin High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Doubleline Yield and Franklin High
The main advantage of trading using opposite Doubleline Yield and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Yield 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.Doubleline Yield vs. Vanguard Total Stock | Doubleline Yield vs. Vanguard 500 Index | Doubleline Yield vs. Vanguard Total Stock | Doubleline Yield vs. Vanguard Total Stock |
Franklin High vs. Franklin Mutual Beacon | Franklin High vs. Templeton Developing Markets | Franklin High vs. Franklin Mutual Global | Franklin High vs. Franklin Mutual Global |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |