Correlation Between Franklin Convertible and Gabelli Convertible
Can any of the company-specific risk be diversified away by investing in both Franklin Convertible and Gabelli Convertible 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 Convertible and Gabelli Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Vertible Securities and Gabelli Convertible And, you can compare the effects of market volatilities on Franklin Convertible and Gabelli Convertible 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 Convertible with a short position of Gabelli Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Convertible and Gabelli Convertible.
Diversification Opportunities for Franklin Convertible and Gabelli Convertible
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Gabelli is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Vertible Securities and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And and Franklin Convertible 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 Vertible Securities are associated (or correlated) with Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of Franklin Convertible i.e., Franklin Convertible and Gabelli Convertible go up and down completely randomly.
Pair Corralation between Franklin Convertible and Gabelli Convertible
Assuming the 90 days horizon Franklin Convertible is expected to generate 2.17 times less return on investment than Gabelli Convertible. But when comparing it to its historical volatility, Franklin Vertible Securities is 1.46 times less risky than Gabelli Convertible. It trades about 0.18 of its potential returns per unit of risk. Gabelli Convertible And is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 367.00 in Gabelli Convertible And on June 6, 2025 and sell it today you would earn a total of 40.00 from holding Gabelli Convertible And or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Vertible Securities vs. Gabelli Convertible And
Performance |
| Timeline |
| Franklin Convertible |
| Gabelli Convertible And |
Franklin Convertible and Gabelli Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Convertible and Gabelli Convertible
The main advantage of trading using opposite Franklin Convertible and Gabelli Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Convertible position performs unexpectedly, Gabelli Convertible 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 Gabelli Convertible will offset losses from the drop in Gabelli Convertible's long position.The idea behind Franklin Vertible Securities and Gabelli Convertible And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gabelli Convertible vs. GAMCO Natural Resources | Gabelli Convertible vs. Gabelli Healthcare WellnessRx | Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. John Hancock Income |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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