Correlation Between Matson Money and Franklin High
Can any of the company-specific risk be diversified away by investing in both Matson Money 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 Matson Money and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Franklin High Yield, you can compare the effects of market volatilities on Matson Money 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 Matson Money with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Franklin High.
Diversification Opportunities for Matson Money and Franklin High
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matson and Franklin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity 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 Matson Money 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 Matson Money Equity 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 Matson Money i.e., Matson Money and Franklin High go up and down completely randomly.
Pair Corralation between Matson Money and Franklin High
Assuming the 90 days horizon Matson Money Equity is expected to under-perform the Franklin High. In addition to that, Matson Money is 3.54 times more volatile than Franklin High Yield. It trades about -0.08 of its total potential returns per unit of risk. Franklin High Yield is currently generating about -0.01 per unit of volatility. If you would invest 887.00 in Franklin High Yield on December 29, 2024 and sell it today you would lose (1.00) from holding Franklin High Yield or give up 0.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Matson Money Equity vs. Franklin High Yield
Performance |
Timeline |
Matson Money Equity |
Franklin High Yield |
Matson Money and Franklin High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Matson Money and Franklin High
The main advantage of trading using opposite Matson Money and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money 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.Matson Money vs. Goldman Sachs Technology | Matson Money vs. Specialized Technology Fund | Matson Money vs. Health Biotchnology Portfolio | Matson Money vs. Specialized Technology Fund |
Franklin High vs. Pgim Esg High | Franklin High vs. Gmo High Yield | Franklin High vs. Western Asset High | Franklin High vs. Victory High Yield |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |