Correlation Between Franklin Income and Clearbridge Energy
Can any of the company-specific risk be diversified away by investing in both Franklin Income and Clearbridge Energy 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 Clearbridge Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Income and Clearbridge Energy Mlp, you can compare the effects of market volatilities on Franklin Income and Clearbridge Energy 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 Clearbridge Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Income and Clearbridge Energy.
Diversification Opportunities for Franklin Income and Clearbridge Energy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Clearbridge is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Income and Clearbridge Energy Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Energy Mlp 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 are associated (or correlated) with Clearbridge Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Energy Mlp has no effect on the direction of Franklin Income i.e., Franklin Income and Clearbridge Energy go up and down completely randomly.
Pair Corralation between Franklin Income and Clearbridge Energy
Assuming the 90 days horizon Franklin Income is expected to generate 0.42 times more return on investment than Clearbridge Energy. However, Franklin Income is 2.4 times less risky than Clearbridge Energy. It trades about 0.05 of its potential returns per unit of risk. Clearbridge Energy Mlp is currently generating about -0.08 per unit of risk. If you would invest 230.00 in Franklin Income on February 4, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Income or generate 0.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Income vs. Clearbridge Energy Mlp
Performance |
Timeline |
Franklin Income |
Clearbridge Energy Mlp |
Franklin Income and Clearbridge Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Income and Clearbridge Energy
The main advantage of trading using opposite Franklin Income and Clearbridge Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Income position performs unexpectedly, Clearbridge Energy 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 Clearbridge Energy will offset losses from the drop in Clearbridge Energy's long position.Franklin Income vs. Franklin Mutual Beacon | Franklin Income vs. Templeton Developing Markets | Franklin Income vs. Franklin Mutual Global | Franklin Income vs. Franklin Mutual Global |
Clearbridge Energy vs. Tortoise Energy Infrastructure | Clearbridge Energy vs. Tortoise Power And | Clearbridge Energy vs. Tortoise Energy Independence | Clearbridge Energy vs. Apollo Tactical 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |