Correlation Between Multisector Bond and Franklin Government
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Franklin Government 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 Multisector Bond and Franklin Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Franklin Government Money, you can compare the effects of market volatilities on Multisector Bond and Franklin Government 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 Multisector Bond with a short position of Franklin Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Franklin Government.
Diversification Opportunities for Multisector Bond and Franklin Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Multisector and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Franklin Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Government Money and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Franklin Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Government Money has no effect on the direction of Multisector Bond i.e., Multisector Bond and Franklin Government go up and down completely randomly.
Pair Corralation between Multisector Bond and Franklin Government
If you would invest 1,366 in Multisector Bond Sma on May 27, 2025 and sell it today you would earn a total of 60.00 from holding Multisector Bond Sma or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multisector Bond Sma vs. Franklin Government Money
Performance |
| Timeline |
| Multisector Bond Sma |
| Franklin Government Money |
Multisector Bond and Franklin Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Franklin Government
The main advantage of trading using opposite Multisector Bond and Franklin Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Franklin Government 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 Government will offset losses from the drop in Franklin Government's long position.| Multisector Bond vs. Global Resources Fund | Multisector Bond vs. Fidelity Advisor Energy | Multisector Bond vs. Icon Natural Resources | Multisector Bond vs. Calvert Global Energy |
| Franklin Government vs. T Rowe Price | Franklin Government vs. Upright Growth Income | Franklin Government vs. Qs Growth Fund | Franklin Government vs. Morningstar Growth Etf |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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