Correlation Between Franklin Growth and Guidemark Smallmid
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Guidemark Smallmid 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 Growth and Guidemark Smallmid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Guidemark Smallmid Cap, you can compare the effects of market volatilities on Franklin Growth and Guidemark Smallmid 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 Growth with a short position of Guidemark Smallmid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Guidemark Smallmid.
Diversification Opportunities for Franklin Growth and Guidemark Smallmid
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Guidemark is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Guidemark Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark Smallmid Cap and Franklin Growth 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 Growth Opportunities are associated (or correlated) with Guidemark Smallmid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark Smallmid Cap has no effect on the direction of Franklin Growth i.e., Franklin Growth and Guidemark Smallmid go up and down completely randomly.
Pair Corralation between Franklin Growth and Guidemark Smallmid
Assuming the 90 days horizon Franklin Growth Opportunities is expected to under-perform the Guidemark Smallmid. In addition to that, Franklin Growth is 1.07 times more volatile than Guidemark Smallmid Cap. It trades about 0.0 of its total potential returns per unit of risk. Guidemark Smallmid Cap is currently generating about 0.02 per unit of volatility. If you would invest 2,246 in Guidemark Smallmid Cap on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Guidemark Smallmid Cap or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Guidemark Smallmid Cap
Performance |
| Timeline |
| Franklin Growth Oppo |
| Guidemark Smallmid Cap |
Franklin Growth and Guidemark Smallmid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Guidemark Smallmid
The main advantage of trading using opposite Franklin Growth and Guidemark Smallmid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Guidemark Smallmid 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 Guidemark Smallmid will offset losses from the drop in Guidemark Smallmid's long position.| Franklin Growth vs. Lebenthal Lisanti Small | Franklin Growth vs. Sp Smallcap 600 | Franklin Growth vs. Ab Small Cap | Franklin Growth vs. Glg Intl Small |
| Guidemark Smallmid vs. General Money Market | Guidemark Smallmid vs. The Gabelli Money | Guidemark Smallmid vs. Putnam Money Market | Guidemark Smallmid vs. Schwab Treasury Money |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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