Correlation Between Mid-cap Value and Franklin High
Can any of the company-specific risk be diversified away by investing in both Mid-cap Value and Franklin High 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 Mid-cap Value and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Value Profund and Franklin High Yield, you can compare the effects of market volatilities on Mid-cap Value and Franklin High 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 Mid-cap Value with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Value and Franklin High.
Diversification Opportunities for Mid-cap Value and Franklin High
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mid-cap and Franklin is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Value Profund and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and Mid-cap Value 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 Mid Cap Value Profund are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Mid-cap Value i.e., Mid-cap Value and Franklin High go up and down completely randomly.
Pair Corralation between Mid-cap Value and Franklin High
Assuming the 90 days horizon Mid-cap Value is expected to generate 2.28 times less return on investment than Franklin High. In addition to that, Mid-cap Value is 5.27 times more volatile than Franklin High Yield. It trades about 0.03 of its total potential returns per unit of risk. Franklin High Yield is currently generating about 0.39 per unit of volatility. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Value Profund vs. Franklin High Yield
Performance |
| Timeline |
| Mid Cap Value |
| Franklin High Yield |
Mid-cap Value and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Value and Franklin High
The main advantage of trading using opposite Mid-cap Value and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Value position performs unexpectedly, Franklin High 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 High will offset losses from the drop in Franklin High's long position.| Mid-cap Value vs. Wells Fargo Government | Mid-cap Value vs. Fidelity Series Government | Mid-cap Value vs. Long Term Government Fund | Mid-cap Value vs. Us Government Securities |
| Franklin High vs. Small Cap Value Profund | Franklin High vs. Mid Cap Value Profund | Franklin High vs. Ultramid Cap Profund Ultramid Cap | Franklin High vs. Small Cap Growth Profund |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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