Correlation Between Franklin High and Ivy International
Can any of the company-specific risk be diversified away by investing in both Franklin High and Ivy International 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 High and Ivy International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Yield and Ivy International E, you can compare the effects of market volatilities on Franklin High and Ivy International 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 High with a short position of Ivy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Ivy International.
Diversification Opportunities for Franklin High and Ivy International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Ivy is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and Ivy International E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy International and Franklin 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 Franklin High Yield are associated (or correlated) with Ivy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy International has no effect on the direction of Franklin High i.e., Franklin High and Ivy International go up and down completely randomly.
Pair Corralation between Franklin High and Ivy International
Assuming the 90 days horizon Franklin High Yield is expected to generate 0.23 times more return on investment than Ivy International. However, Franklin High Yield is 4.31 times less risky than Ivy International. It trades about 0.39 of its potential returns per unit of risk. Ivy International E is currently generating about 0.05 per unit of risk. If you would invest 868.00 in Franklin High Yield on September 1, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin High Yield vs. Ivy International E
Performance |
| Timeline |
| Franklin High Yield |
| Ivy International |
Franklin High and Ivy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Ivy International
The main advantage of trading using opposite Franklin High and Ivy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Ivy International 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 Ivy International will offset losses from the drop in Ivy International's long position.| Franklin High vs. Balanced Strategy Fund | Franklin High vs. Doubleline Emerging Markets | Franklin High vs. Rbc Emerging Markets | Franklin High vs. Harding Loevner Emerging |
| Ivy International vs. Federated Global Allocation | Ivy International vs. Rbc Bluebay Global | Ivy International vs. Ab Global Risk | Ivy International vs. Templeton Global Balanced |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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