Correlation Between Franklin Growth and Kinetics Global
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Kinetics Global 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 Kinetics Global 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 Kinetics Global Fund, you can compare the effects of market volatilities on Franklin Growth and Kinetics Global 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 Kinetics Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Kinetics Global.
Diversification Opportunities for Franklin Growth and Kinetics Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Kinetics is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Kinetics Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Global 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 Kinetics Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Global has no effect on the direction of Franklin Growth i.e., Franklin Growth and Kinetics Global go up and down completely randomly.
Pair Corralation between Franklin Growth and Kinetics Global
Assuming the 90 days horizon Franklin Growth is expected to generate 3.07 times less return on investment than Kinetics Global. But when comparing it to its historical volatility, Franklin Growth Opportunities is 1.42 times less risky than Kinetics Global. It trades about 0.07 of its potential returns per unit of risk. Kinetics Global Fund is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 872.00 in Kinetics Global Fund on November 3, 2024 and sell it today you would earn a total of 687.00 from holding Kinetics Global Fund or generate 78.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Kinetics Global Fund
Performance |
| Timeline |
| Franklin Growth Oppo |
| Kinetics Global |
Franklin Growth and Kinetics Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Kinetics Global
The main advantage of trading using opposite Franklin Growth and Kinetics Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Kinetics Global 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 Kinetics Global will offset losses from the drop in Kinetics Global's long position.| Franklin Growth vs. Rbb Fund | Franklin Growth vs. L Abbett Growth | Franklin Growth vs. Fm Investments Large | Franklin Growth vs. Qs Global Equity |
| Kinetics Global vs. Voya Retirement Servative | Kinetics Global vs. Wilmington Trust Retirement | Kinetics Global vs. Blackrock Moderate Prepared | Kinetics Global vs. Dimensional Retirement 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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