Correlation Between Franklin Growth and Nationwide Global
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Nationwide 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 Nationwide Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Fund and Nationwide Global Equity, you can compare the effects of market volatilities on Franklin Growth and Nationwide 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 Nationwide Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Nationwide Global.
Diversification Opportunities for Franklin Growth and Nationwide Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Nationwide is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Nationwide Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Global Equity 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 Fund are associated (or correlated) with Nationwide Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Global Equity has no effect on the direction of Franklin Growth i.e., Franklin Growth and Nationwide Global go up and down completely randomly.
Pair Corralation between Franklin Growth and Nationwide Global
Assuming the 90 days horizon Franklin Growth Fund is expected to generate 1.2 times more return on investment than Nationwide Global. However, Franklin Growth is 1.2 times more volatile than Nationwide Global Equity. It trades about 0.09 of its potential returns per unit of risk. Nationwide Global Equity is currently generating about 0.09 per unit of risk. If you would invest 10,084 in Franklin Growth Fund on September 13, 2024 and sell it today you would earn a total of 4,858 from holding Franklin Growth Fund or generate 48.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Franklin Growth Fund vs. Nationwide Global Equity
Performance |
| Timeline |
| Franklin Growth |
| Nationwide Global Equity |
Franklin Growth and Nationwide Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Nationwide Global
The main advantage of trading using opposite Franklin Growth and Nationwide Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Nationwide 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 Nationwide Global will offset losses from the drop in Nationwide Global's long position.| 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 |
| Nationwide Global vs. Transamerica Intermediate Muni | Nationwide Global vs. Oklahoma Municipal Fund | Nationwide Global vs. Old Westbury Municipal | Nationwide Global vs. T Rowe Price |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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