Correlation Between Artisan High and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Artisan High and Franklin Adjustable 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 Artisan High and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan High Income and Franklin Adjustable Government, you can compare the effects of market volatilities on Artisan High and Franklin Adjustable 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 Artisan High with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan High and Franklin Adjustable.
Diversification Opportunities for Artisan High and Franklin Adjustable
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Artisan and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Artisan High Income and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Artisan 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 Artisan High Income are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Artisan High i.e., Artisan High and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Artisan High and Franklin Adjustable
Assuming the 90 days horizon Artisan High Income is expected to generate 1.66 times more return on investment than Franklin Adjustable. However, Artisan High is 1.66 times more volatile than Franklin Adjustable Government. It trades about 0.24 of its potential returns per unit of risk. Franklin Adjustable Government is currently generating about 0.14 per unit of risk. If you would invest 905.00 in Artisan High Income on June 1, 2025 and sell it today you would earn a total of 21.00 from holding Artisan High Income or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan High Income vs. Franklin Adjustable Government
Performance |
| Timeline |
| Artisan High Income |
| Franklin Adjustable |
Artisan High and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan High and Franklin Adjustable
The main advantage of trading using opposite Artisan High and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan High position performs unexpectedly, Franklin Adjustable 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 Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Artisan High vs. Artisan Value Income | Artisan High vs. Artisan Developing World | Artisan High vs. Artisan Thematic Fund | Artisan High vs. Artisan Small Cap |
| Franklin Adjustable vs. Multimanager Lifestyle Moderate | Franklin Adjustable vs. Voya Target Retirement | Franklin Adjustable vs. Trowe Price Retirement | Franklin Adjustable vs. Columbia Moderate Growth |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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