Correlation Between Allianzgi Technology and Franklin High
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology 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 Allianzgi Technology and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Technology Fund and Franklin High Income, you can compare the effects of market volatilities on Allianzgi Technology 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 Allianzgi Technology with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Franklin High.
Diversification Opportunities for Allianzgi Technology and Franklin High
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allianzgi and Franklin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Franklin High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Income and Allianzgi Technology 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 Technology Fund 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 Income has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Franklin High go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Franklin High
Assuming the 90 days horizon Allianzgi Technology Fund is expected to under-perform the Franklin High. In addition to that, Allianzgi Technology is 5.7 times more volatile than Franklin High Income. It trades about -0.02 of its total potential returns per unit of risk. Franklin High Income is currently generating about -0.1 per unit of volatility. If you would invest 176.00 in Franklin High Income on October 10, 2024 and sell it today you would lose (1.00) from holding Franklin High Income or give up 0.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Allianzgi Technology Fund vs. Franklin High Income
Performance |
Timeline |
Allianzgi Technology |
Franklin High Income |
Allianzgi Technology and Franklin High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Technology and Franklin High
The main advantage of trading using opposite Allianzgi Technology and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology 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.Allianzgi Technology vs. Madison Diversified Income | Allianzgi Technology vs. Tax Managed Mid Small | Allianzgi Technology vs. Guggenheim Diversified Income | Allianzgi Technology vs. Davenport Small Cap |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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