Correlation Between Franklin Gold and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Saat Moderate 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 Gold and Saat Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold Precious and Saat Moderate Strategy, you can compare the effects of market volatilities on Franklin Gold and Saat Moderate 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 Gold with a short position of Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Saat Moderate.
Diversification Opportunities for Franklin Gold and Saat Moderate
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Saat is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy and Franklin Gold 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 Gold Precious are associated (or correlated) with Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Franklin Gold i.e., Franklin Gold and Saat Moderate go up and down completely randomly.
Pair Corralation between Franklin Gold and Saat Moderate
Assuming the 90 days horizon Franklin Gold Precious is expected to under-perform the Saat Moderate. In addition to that, Franklin Gold is 7.83 times more volatile than Saat Moderate Strategy. It trades about -0.23 of its total potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.22 per unit of volatility. If you would invest 1,176 in Saat Moderate Strategy on August 31, 2024 and sell it today you would earn a total of 15.00 from holding Saat Moderate Strategy or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Saat Moderate Strategy
Performance |
| Timeline |
| Franklin Gold Precious |
| Saat Moderate Strategy |
Franklin Gold and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Saat Moderate
The main advantage of trading using opposite Franklin Gold and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Saat Moderate 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 Saat Moderate will offset losses from the drop in Saat Moderate's long position.| Franklin Gold vs. First Eagle Gold | Franklin Gold vs. First Eagle Gold | Franklin Gold vs. Oppenheimer Gold Special | Franklin Gold vs. Gold Portfolio Gold |
| Saat Moderate vs. Aqr Large Cap | Saat Moderate vs. T Rowe Price | Saat Moderate vs. Legg Mason Bw | Saat Moderate vs. Dana Large Cap |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |