Correlation Between Franklin Growth and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Clean, you can compare the effects of market volatilities on Franklin Growth and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Goldman Sachs.
Diversification Opportunities for Franklin Growth and Goldman Sachs
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Goldman is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Goldman Sachs Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Clean 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Clean has no effect on the direction of Franklin Growth i.e., Franklin Growth and Goldman Sachs go up and down completely randomly.
Pair Corralation between Franklin Growth and Goldman Sachs
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.0 times more return on investment than Goldman Sachs. However, Franklin Growth Opportunities is as risky as Goldman Sachs. It trades about 0.09 of its potential returns per unit of risk. Goldman Sachs Clean is currently generating about -0.04 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Goldman Sachs Clean
Performance |
| Timeline |
| Franklin Growth Oppo |
| Goldman Sachs Clean |
Franklin Growth and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Goldman Sachs
The main advantage of trading using opposite Franklin Growth and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Rational Defensive Growth | Goldman Sachs vs. Franklin Growth Opportunities | Goldman Sachs vs. Ftfa Franklin Templeton Growth | Goldman Sachs vs. Smallcap Growth 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |