Correlation Between Ab High and Franklin California
Can any of the company-specific risk be diversified away by investing in both Ab High and Franklin California 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 Ab High and Franklin California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab High Income and Franklin California High, you can compare the effects of market volatilities on Ab High and Franklin California 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 Ab High with a short position of Franklin California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Franklin California.
Diversification Opportunities for Ab High and Franklin California
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AGDAX and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Franklin California High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California High and Ab High 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 Ab High Income are associated (or correlated) with Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California High has no effect on the direction of Ab High i.e., Ab High and Franklin California go up and down completely randomly.
Pair Corralation between Ab High and Franklin California
Assuming the 90 days horizon Ab High is expected to generate 2.99 times less return on investment than Franklin California. But when comparing it to its historical volatility, Ab High Income is 1.09 times less risky than Franklin California. It trades about 0.16 of its potential returns per unit of risk. Franklin California High is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 923.00 in Franklin California High on July 23, 2025 and sell it today you would earn a total of 53.00 from holding Franklin California High or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Franklin California High
Performance |
| Timeline |
| Ab High Income |
| Franklin California High |
Ab High and Franklin California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Franklin California
The main advantage of trading using opposite Ab High and Franklin California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Franklin California 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 California will offset losses from the drop in Franklin California's long position.| Ab High vs. Touchstone Small Cap | Ab High vs. Glg Intl Small | Ab High vs. Omni Small Cap Value | Ab High vs. Vanguard Small Cap Index |
| Franklin California vs. Tax Exempt Fund Of | Franklin California vs. Mfs Municipal Limited | Franklin California vs. Fidelity Sai Municipal | Franklin California vs. Franklin Vertible Securities |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |