Correlation Between Franklin Growth and Voya Index
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Voya Index 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 Voya Index 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 Voya Index Solution, you can compare the effects of market volatilities on Franklin Growth and Voya Index 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 Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Voya Index.
Diversification Opportunities for Franklin Growth and Voya Index
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Voya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution 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 Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Franklin Growth i.e., Franklin Growth and Voya Index go up and down completely randomly.
Pair Corralation between Franklin Growth and Voya Index
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 2.36 times more return on investment than Voya Index. However, Franklin Growth is 2.36 times more volatile than Voya Index Solution. It trades about 0.07 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.12 per unit of risk. If you would invest 6,190 in Franklin Growth Opportunities on August 30, 2024 and sell it today you would earn a total of 112.00 from holding Franklin Growth Opportunities or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Voya Index Solution
Performance |
| Timeline |
| Franklin Growth Oppo |
| Voya Index Solution |
Franklin Growth and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Voya Index
The main advantage of trading using opposite Franklin Growth and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Franklin Growth vs. Abr 7525 Volatility | Franklin Growth vs. Scharf Global Opportunity | Franklin Growth vs. Arrow Managed Futures | Franklin Growth vs. Aam Select Income |
| Voya Index vs. Ab Small Cap | Voya Index vs. Tax Managed Mid Small | Voya Index vs. Touchstone Small Cap | Voya Index vs. Chartwell Small Cap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |