Correlation Between Franklin Growth and Gabelli Media
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Gabelli Media 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 Gabelli Media 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 Gabelli Media Mogul, you can compare the effects of market volatilities on Franklin Growth and Gabelli Media 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 Gabelli Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Gabelli Media.
Diversification Opportunities for Franklin Growth and Gabelli Media
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Gabelli is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Gabelli Media Mogul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Media Mogul 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 Gabelli Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Media Mogul has no effect on the direction of Franklin Growth i.e., Franklin Growth and Gabelli Media go up and down completely randomly.
Pair Corralation between Franklin Growth and Gabelli Media
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.33 times more return on investment than Gabelli Media. However, Franklin Growth is 1.33 times more volatile than Gabelli Media Mogul. It trades about 0.06 of its potential returns per unit of risk. Gabelli Media Mogul is currently generating about 0.03 per unit of risk. If you would invest 5,477 in Franklin Growth Opportunities on September 14, 2024 and sell it today you would earn a total of 955.00 from holding Franklin Growth Opportunities or generate 17.44% 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. Gabelli Media Mogul
Performance |
| Timeline |
| Franklin Growth Oppo |
| Gabelli Media Mogul |
Franklin Growth and Gabelli Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Gabelli Media
The main advantage of trading using opposite Franklin Growth and Gabelli Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Gabelli Media 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 Gabelli Media will offset losses from the drop in Gabelli Media'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 |
| Gabelli Media vs. Alphacentric Lifesci Healthcare | Gabelli Media vs. Hartford Healthcare Hls | Gabelli Media vs. Vanguard Health Care | Gabelli Media vs. Live Oak Health |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |