Correlation Between Franklin and Gotham Master
Can any of the company-specific risk be diversified away by investing in both Franklin and Gotham Master 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 and Gotham Master into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Gotham Master Neutral, you can compare the effects of market volatilities on Franklin and Gotham Master 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 with a short position of Gotham Master. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Gotham Master.
Diversification Opportunities for Franklin and Gotham Master
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Gotham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Gotham Master Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotham Master Neutral and 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 Franklin Government Money are associated (or correlated) with Gotham Master. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotham Master Neutral has no effect on the direction of Franklin i.e., Franklin and Gotham Master go up and down completely randomly.
Pair Corralation between Franklin and Gotham Master
If you would invest (100.00) in Gotham Master Neutral on November 5, 2024 and sell it today you would earn a total of 100.00 from holding Gotham Master Neutral or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Government Money vs. Gotham Master Neutral
Performance |
| Timeline |
| Franklin Government Money |
| Gotham Master Neutral |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin and Gotham Master Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Gotham Master
The main advantage of trading using opposite Franklin and Gotham Master positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Gotham Master 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 Gotham Master will offset losses from the drop in Gotham Master's long position.| Franklin vs. Avantis Large Cap | Franklin vs. Oakmark Fund Investor | Franklin vs. Fidelity Large Cap | Franklin vs. Tax Managed Large Cap |
| Gotham Master vs. Dunham High Yield | Gotham Master vs. Gmo High Yield | Gotham Master vs. Tiaa Cref High Yield | Gotham Master vs. Jpmorgan High Yield |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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