Correlation Between Ftfa Franklin and Great-west Goldman
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Great-west Goldman 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 Ftfa Franklin and Great-west Goldman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Great West Goldman Sachs, you can compare the effects of market volatilities on Ftfa Franklin and Great-west Goldman 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 Ftfa Franklin with a short position of Great-west Goldman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Great-west Goldman.
Diversification Opportunities for Ftfa Franklin and Great-west Goldman
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ftfa and Great-west is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Great West Goldman Sachs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Goldman and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Great-west Goldman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Goldman has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Great-west Goldman go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Great-west Goldman
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to under-perform the Great-west Goldman. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ftfa Franklin Templeton Growth is 5.06 times less risky than Great-west Goldman. The mutual fund trades about -0.25 of its potential returns per unit of risk. The Great West Goldman Sachs is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Great West Goldman Sachs on October 17, 2024 and sell it today you would lose (34.00) from holding Great West Goldman Sachs or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Great West Goldman Sachs
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Great West Goldman |
Ftfa Franklin and Great-west Goldman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa Franklin and Great-west Goldman
The main advantage of trading using opposite Ftfa Franklin and Great-west Goldman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Great-west Goldman 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 Great-west Goldman will offset losses from the drop in Great-west Goldman's long position.| Ftfa Franklin vs. Dws Government Money | Ftfa Franklin vs. Blackrock Pa Muni | Ftfa Franklin vs. Fidelity California Municipal | Ftfa Franklin vs. Franklin Adjustable Government |
| Great-west Goldman vs. Mid Cap Growth | Great-west Goldman vs. Rational Defensive Growth | Great-west Goldman vs. Needham Aggressive Growth | Great-west Goldman vs. Ftfa Franklin Templeton Growth |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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