Correlation Between Franklin Growth and Franklin Rising
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Franklin Rising 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 Franklin Rising 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 Franklin Rising Dividends, you can compare the effects of market volatilities on Franklin Growth and Franklin Rising 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 Franklin Rising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Franklin Rising.
Diversification Opportunities for Franklin Growth and Franklin Rising
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Franklin Rising Dividends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Rising Dividends 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 Franklin Rising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Rising Dividends has no effect on the direction of Franklin Growth i.e., Franklin Growth and Franklin Rising go up and down completely randomly.
Pair Corralation between Franklin Growth and Franklin Rising
Assuming the 90 days horizon Franklin Growth is expected to generate 2.14 times less return on investment than Franklin Rising. In addition to that, Franklin Growth is 1.29 times more volatile than Franklin Rising Dividends. It trades about 0.05 of its total potential returns per unit of risk. Franklin Rising Dividends is currently generating about 0.15 per unit of volatility. If you would invest 9,943 in Franklin Rising Dividends on August 30, 2024 and sell it today you would earn a total of 239.00 from holding Franklin Rising Dividends or generate 2.4% 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 Fund vs. Franklin Rising Dividends
Performance |
| Timeline |
| Franklin Growth |
| Franklin Rising Dividends |
Franklin Growth and Franklin Rising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Franklin Rising
The main advantage of trading using opposite Franklin Growth and Franklin Rising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Franklin Rising 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 Franklin Rising will offset losses from the drop in Franklin Rising's long position.| Franklin Growth vs. Franklin Mutual Beacon | Franklin Growth vs. Templeton Developing Markets | Franklin Growth vs. Franklin Mutual Global | Franklin Growth vs. Franklin Mutual Global |
| Franklin Rising vs. Fidelity Advisor Gold | Franklin Rising vs. Gabelli Gold Fund | Franklin Rising vs. Goldman Sachs Centrated | Franklin Rising vs. International Investors Gold |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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