Correlation Between Franklin Growth and Salient Tactical
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Salient Tactical 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 Salient Tactical 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 Salient Tactical Growth, you can compare the effects of market volatilities on Franklin Growth and Salient Tactical 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 Salient Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Salient Tactical.
Diversification Opportunities for Franklin Growth and Salient Tactical
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Salient is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Salient Tactical Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Tactical Growth 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 Salient Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Tactical Growth has no effect on the direction of Franklin Growth i.e., Franklin Growth and Salient Tactical go up and down completely randomly.
Pair Corralation between Franklin Growth and Salient Tactical
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.86 times more return on investment than Salient Tactical. However, Franklin Growth is 1.86 times more volatile than Salient Tactical Growth. It trades about 0.09 of its potential returns per unit of risk. Salient Tactical Growth is currently generating about 0.11 per unit of risk. If you would invest 3,873 in Franklin Growth Opportunities on September 14, 2024 and sell it today you would earn a total of 2,559 from holding Franklin Growth Opportunities or generate 66.07% 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. Salient Tactical Growth
Performance |
| Timeline |
| Franklin Growth Oppo |
| Salient Tactical Growth |
Franklin Growth and Salient Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Salient Tactical
The main advantage of trading using opposite Franklin Growth and Salient Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Salient Tactical 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 Salient Tactical will offset losses from the drop in Salient Tactical's long position.| Franklin Growth vs. Western Asset Municipal | Franklin Growth vs. Artisan High Income | Franklin Growth vs. Dreyfusstandish Global Fixed | Franklin Growth vs. Dws Government Money |
| Salient Tactical vs. Ftfa Franklin Templeton Growth | Salient Tactical vs. Smallcap Growth Fund | Salient Tactical vs. Franklin Growth Opportunities | Salient Tactical vs. Tfa Alphagen Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
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