Correlation Between Franklin and Vy Baron
Can any of the company-specific risk be diversified away by investing in both Franklin and Vy Baron 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 Vy Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Franklin and Vy Baron 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 Vy Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Vy Baron.
Diversification Opportunities for Franklin and Vy Baron
Very good diversification
The 3 months correlation between Franklin and IBSAX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth 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 Vy Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Franklin i.e., Franklin and Vy Baron go up and down completely randomly.
Pair Corralation between Franklin and Vy Baron
If you would invest 99.00 in Franklin Government Money on November 1, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Government Money or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Vy Baron Growth
Performance |
| Timeline |
| Franklin Government Money |
| Vy Baron Growth |
Franklin and Vy Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Vy Baron
The main advantage of trading using opposite Franklin and Vy Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Vy Baron 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 Vy Baron will offset losses from the drop in Vy Baron's long position.| Franklin vs. Vanguard Information Technology | Franklin vs. Science Technology Fund | Franklin vs. Blackrock Science Technology | Franklin vs. Dreyfus Technology Growth |
| Vy Baron vs. Icon Information Technology | Vy Baron vs. Columbia Global Technology | Vy Baron vs. Icon Information Technology | Vy Baron vs. Specialized Technology 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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