Correlation Between Franklin Growth and Harbor International
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Harbor International 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 Harbor International 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 Harbor International Small, you can compare the effects of market volatilities on Franklin Growth and Harbor International 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 Harbor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Harbor International.
Diversification Opportunities for Franklin Growth and Harbor International
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Harbor is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Harbor International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor International 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 Harbor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor International has no effect on the direction of Franklin Growth i.e., Franklin Growth and Harbor International go up and down completely randomly.
Pair Corralation between Franklin Growth and Harbor International
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.54 times more return on investment than Harbor International. However, Franklin Growth is 1.54 times more volatile than Harbor International Small. It trades about 0.07 of its potential returns per unit of risk. Harbor International Small is currently generating about 0.04 per unit of risk. If you would invest 5,164 in Franklin Growth Opportunities on September 14, 2024 and sell it today you would earn a total of 1,268 from holding Franklin Growth Opportunities or generate 24.55% 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 Opportunities vs. Harbor International Small
Performance |
| Timeline |
| Franklin Growth Oppo |
| Harbor International |
Franklin Growth and Harbor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Harbor International
The main advantage of trading using opposite Franklin Growth and Harbor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Harbor International 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 Harbor International will offset losses from the drop in Harbor International'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 |
| Harbor International vs. Vy Baron Growth | Harbor International vs. Qs Defensive Growth | Harbor International vs. Mid Cap Growth | Harbor International vs. Franklin Growth Opportunities |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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