Correlation Between Amg River and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Amg River and Franklin Growth 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 Amg River and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg River Road and Franklin Growth Fund, you can compare the effects of market volatilities on Amg River and Franklin Growth 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 Amg River with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg River and Franklin Growth.
Diversification Opportunities for Amg River and Franklin Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Amg and Franklin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Amg River Road and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Amg River 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 Amg River Road are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth has no effect on the direction of Amg River i.e., Amg River and Franklin Growth go up and down completely randomly.
Pair Corralation between Amg River and Franklin Growth
Assuming the 90 days horizon Amg River is expected to generate 1.31 times less return on investment than Franklin Growth. In addition to that, Amg River is 1.03 times more volatile than Franklin Growth Fund. It trades about 0.04 of its total potential returns per unit of risk. Franklin Growth Fund is currently generating about 0.05 per unit of volatility. If you would invest 14,846 in Franklin Growth Fund on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Franklin Growth Fund or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Amg River Road vs. Franklin Growth Fund
Performance |
| Timeline |
| Amg River Road |
| Franklin Growth |
Amg River and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg River and Franklin Growth
The main advantage of trading using opposite Amg River and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg River position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global Fund |
| Franklin Growth vs. Ab Small Cap | Franklin Growth vs. Amg River Road | Franklin Growth vs. Royce Opportunity Fund | Franklin Growth vs. Great West Loomis Sayles |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| CEOs Directory Screen CEOs from public companies around the world |