Correlation Between Franklin Templeton and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Allianzgi Convertible 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 Templeton and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton Limited and Allianzgi Convertible Income, you can compare the effects of market volatilities on Franklin Templeton and Allianzgi Convertible 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 Templeton with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Allianzgi Convertible.
Diversification Opportunities for Franklin Templeton and Allianzgi Convertible
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Allianzgi is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Limited and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Franklin Templeton 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 Templeton Limited are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Franklin Templeton and Allianzgi Convertible
Considering the 90-day investment horizon Franklin Templeton is expected to generate 1.21 times less return on investment than Allianzgi Convertible. But when comparing it to its historical volatility, Franklin Templeton Limited is 2.04 times less risky than Allianzgi Convertible. It trades about 0.1 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Allianzgi Convertible Income on September 13, 2024 and sell it today you would earn a total of 94.00 from holding Allianzgi Convertible Income or generate 40.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Templeton Limited vs. Allianzgi Convertible Income
Performance |
Timeline |
Franklin Templeton |
Allianzgi Convertible |
Franklin Templeton and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Templeton and Allianzgi Convertible
The main advantage of trading using opposite Franklin Templeton and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Allianzgi Convertible 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.Franklin Templeton vs. MFS Investment Grade | Franklin Templeton vs. Eaton Vance National | Franklin Templeton vs. Rivernorth Opportunistic Municipalome | Franklin Templeton vs. RiverNorth Managed Duration |
Allianzgi Convertible vs. Munivest Fund | Allianzgi Convertible vs. MFS High Income | Allianzgi Convertible vs. Franklin Templeton Limited | Allianzgi Convertible vs. Clough Global Ef |
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
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Transaction History View history of all your transactions and understand their impact on performance |