Correlation Between Franklin Growth and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Franklin Strategic 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 Strategic 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 Strategic Income, you can compare the effects of market volatilities on Franklin Growth and Franklin Strategic 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 Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Franklin Strategic.
Diversification Opportunities for Franklin Growth and Franklin Strategic
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and FRANKLIN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Franklin Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic Income 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 Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic Income has no effect on the direction of Franklin Growth i.e., Franklin Growth and Franklin Strategic go up and down completely randomly.
Pair Corralation between Franklin Growth and Franklin Strategic
Assuming the 90 days horizon Franklin Growth Fund is expected to generate 4.49 times more return on investment than Franklin Strategic. However, Franklin Growth is 4.49 times more volatile than Franklin Strategic Income. It trades about 0.05 of its potential returns per unit of risk. Franklin Strategic Income is currently generating about 0.09 per unit of risk. If you would invest 11,866 in Franklin Growth Fund on September 3, 2024 and sell it today you would earn a total of 3,134 from holding Franklin Growth Fund or generate 26.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Fund vs. Franklin Strategic Income
Performance |
| Timeline |
| Franklin Growth |
| Franklin Strategic Income |
Franklin Growth and Franklin Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Franklin Strategic
The main advantage of trading using opposite Franklin Growth and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.| Franklin Growth vs. American Funds The | Franklin Growth vs. American Funds The | Franklin Growth vs. Growth Fund Of | Franklin Growth vs. Growth Fund Of |
| Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |