Correlation Between Franklin Growth and Great West
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Great West 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 Great West 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 Great West Real Estate, you can compare the effects of market volatilities on Franklin Growth and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Great West.
Diversification Opportunities for Franklin Growth and Great West
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Great is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Great West Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Real 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Real has no effect on the direction of Franklin Growth i.e., Franklin Growth and Great West go up and down completely randomly.
Pair Corralation between Franklin Growth and Great West
Assuming the 90 days horizon Franklin Growth Opportunities is expected to under-perform the Great West. In addition to that, Franklin Growth is 1.23 times more volatile than Great West Real Estate. It trades about -0.01 of its total potential returns per unit of risk. Great West Real Estate is currently generating about 0.0 per unit of volatility. If you would invest 1,352 in Great West Real Estate on September 12, 2024 and sell it today you would lose (1.00) from holding Great West Real Estate or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Great West Real Estate
Performance |
| Timeline |
| Franklin Growth Oppo |
| Great West Real |
Franklin Growth and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Great West
The main advantage of trading using opposite Franklin Growth and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.| Franklin Growth vs. American Funds The | Franklin Growth vs. American Funds The | Franklin Growth vs. Growth Fund Of | Franklin Growth vs. Growth Fund Of |
| Great West vs. T Rowe Price | Great West vs. Qs Growth Fund | Great West vs. Commonwealth Global Fund | Great West vs. Volumetric Fund Volumetric |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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