Correlation Between Enhanced Fixed and Franklin High
Can any of the company-specific risk be diversified away by investing in both Enhanced Fixed 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 Enhanced Fixed and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhanced Fixed Income and Franklin High Yield, you can compare the effects of market volatilities on Enhanced Fixed 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 Enhanced Fixed with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhanced Fixed and Franklin High.
Diversification Opportunities for Enhanced Fixed and Franklin High
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Enhanced and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Enhanced Fixed Income 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 Enhanced Fixed 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 Enhanced Fixed Income 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 Enhanced Fixed i.e., Enhanced Fixed and Franklin High go up and down completely randomly.
Pair Corralation between Enhanced Fixed and Franklin High
Assuming the 90 days horizon Enhanced Fixed is expected to generate 1.45 times less return on investment than Franklin High. In addition to that, Enhanced Fixed is 1.25 times more volatile than Franklin High Yield. It trades about 0.21 of its total potential returns per unit of risk. Franklin High Yield is currently generating about 0.39 per unit of volatility. If you would invest 868.00 in Franklin High Yield on September 2, 2025 and sell it today you would earn a total of 40.00 from holding Franklin High Yield or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enhanced Fixed Income vs. Franklin High Yield
Performance |
| Timeline |
| Enhanced Fixed Income |
| Franklin High Yield |
Enhanced Fixed and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhanced Fixed and Franklin High
The main advantage of trading using opposite Enhanced Fixed and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhanced Fixed 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.| Enhanced Fixed vs. Virtus Seix Government | Enhanced Fixed vs. Us Government Securities | Enhanced Fixed vs. Dunham Porategovernment Bond | Enhanced Fixed vs. Great West Government Mortgage |
| Franklin High vs. Balanced Strategy Fund | Franklin High vs. Doubleline Emerging Markets | Franklin High vs. Rbc Emerging Markets | Franklin High vs. Harding Loevner Emerging |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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