Correlation Between Franklin Growth and Qs Growth
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Qs Growth 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 Qs Growth 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 Qs Growth Fund, you can compare the effects of market volatilities on Franklin Growth and Qs Growth 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 Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Qs Growth.
Diversification Opportunities for Franklin Growth and Qs Growth
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and SCHAX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund 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 Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of Franklin Growth i.e., Franklin Growth and Qs Growth go up and down completely randomly.
Pair Corralation between Franklin Growth and Qs Growth
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.58 times more return on investment than Qs Growth. However, Franklin Growth is 1.58 times more volatile than Qs Growth Fund. It trades about 0.29 of its potential returns per unit of risk. Qs Growth Fund is currently generating about 0.36 per unit of risk. If you would invest 3,642 in Franklin Growth Opportunities on September 5, 2024 and sell it today you would earn a total of 233.00 from holding Franklin Growth Opportunities or generate 6.4% 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 Opportunities vs. Qs Growth Fund
Performance |
| Timeline |
| Franklin Growth Oppo |
| Qs Growth Fund |
Franklin Growth and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Qs Growth
The main advantage of trading using opposite Franklin Growth and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Qs Growth 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 Qs Growth will offset losses from the drop in Qs Growth'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 |
| Qs Growth vs. Franklin Founding Funds | Qs Growth vs. Franklin Growth Allocation | Qs Growth vs. Franklin Growth Fund | Qs Growth vs. Franklin Growth Opportunities |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |