Correlation Between Franklin Federal and Calvert Floating-rate
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Calvert Floating-rate 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 Federal and Calvert Floating-rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Limited Term and Calvert Floating Rate Advantage, you can compare the effects of market volatilities on Franklin Federal and Calvert Floating-rate 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 Federal with a short position of Calvert Floating-rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Calvert Floating-rate.
Diversification Opportunities for Franklin Federal and Calvert Floating-rate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Calvert is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate and Franklin Federal 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 Federal Limited Term are associated (or correlated) with Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Franklin Federal i.e., Franklin Federal and Calvert Floating-rate go up and down completely randomly.
Pair Corralation between Franklin Federal and Calvert Floating-rate
Assuming the 90 days horizon Franklin Federal Limited Term is expected to generate 0.61 times more return on investment than Calvert Floating-rate. However, Franklin Federal Limited Term is 1.64 times less risky than Calvert Floating-rate. It trades about 0.35 of its potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.19 per unit of risk. If you would invest 1,020 in Franklin Federal Limited Term on June 1, 2025 and sell it today you would earn a total of 16.00 from holding Franklin Federal Limited Term or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Calvert Floating Rate Advantag
Performance |
| Timeline |
| Franklin Federal Lim |
| Calvert Floating Rate |
Franklin Federal and Calvert Floating-rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Calvert Floating-rate
The main advantage of trading using opposite Franklin Federal and Calvert Floating-rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Calvert Floating-rate 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 Calvert Floating-rate will offset losses from the drop in Calvert Floating-rate's long position.| Franklin Federal vs. Franklin Mutual Beacon | Franklin Federal vs. Templeton Developing Markets | Franklin Federal vs. Franklin Mutual Global | Franklin Federal vs. Franklin Mutual Global |
| Calvert Floating-rate vs. Eic Value Fund | Calvert Floating-rate vs. T Rowe Price | Calvert Floating-rate vs. Gmo Quality Fund | Calvert Floating-rate vs. Leuthold Global Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |