Correlation Between Franklin Income and Hartford Balanced
Can any of the company-specific risk be diversified away by investing in both Franklin Income and Hartford Balanced 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 Income and Hartford Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Income Fund and The Hartford Balanced, you can compare the effects of market volatilities on Franklin Income and Hartford Balanced 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 Income with a short position of Hartford Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Income and Hartford Balanced.
Diversification Opportunities for Franklin Income and Hartford Balanced
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Hartford is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Income Fund and The Hartford Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Balanced and Franklin Income 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 Income Fund are associated (or correlated) with Hartford Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Balanced has no effect on the direction of Franklin Income i.e., Franklin Income and Hartford Balanced go up and down completely randomly.
Pair Corralation between Franklin Income and Hartford Balanced
Assuming the 90 days horizon Franklin Income Fund is expected to generate 0.91 times more return on investment than Hartford Balanced. However, Franklin Income Fund is 1.1 times less risky than Hartford Balanced. It trades about -0.13 of its potential returns per unit of risk. The Hartford Balanced is currently generating about -0.17 per unit of risk. If you would invest 225.00 in Franklin Income Fund on January 19, 2024 and sell it today you would lose (3.00) from holding Franklin Income Fund or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Income Fund vs. The Hartford Balanced
Performance |
| Timeline |
| Franklin Me Fund |
| Hartford Balanced |
Franklin Income and Hartford Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Income and Hartford Balanced
The main advantage of trading using opposite Franklin Income and Hartford Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Income position performs unexpectedly, Hartford Balanced 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 Hartford Balanced will offset losses from the drop in Hartford Balanced's long position.| Franklin Income vs. HUMANA INC | Franklin Income vs. Aquagold International | Franklin Income vs. Spring Valley Acquisition |
| Hartford Balanced vs. Permanent Portfolio Class | Hartford Balanced vs. Large Cap Fund | Hartford Balanced vs. Westcore Plus Bond |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |