Correlation Between Franklin Growth and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Loomis Sayles 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 Loomis Sayles 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 Loomis Sayles E, you can compare the effects of market volatilities on Franklin Growth and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Loomis Sayles.
Diversification Opportunities for Franklin Growth and Loomis Sayles
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Loomis is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Loomis Sayles E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles E 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 Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles E has no effect on the direction of Franklin Growth i.e., Franklin Growth and Loomis Sayles go up and down completely randomly.
Pair Corralation between Franklin Growth and Loomis Sayles
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 2.77 times more return on investment than Loomis Sayles. However, Franklin Growth is 2.77 times more volatile than Loomis Sayles E. It trades about 0.07 of its potential returns per unit of risk. Loomis Sayles E is currently generating about 0.03 per unit of risk. If you would invest 4,324 in Franklin Growth Opportunities on September 3, 2024 and sell it today you would earn a total of 2,020 from holding Franklin Growth Opportunities or generate 46.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Loomis Sayles E
Performance |
| Timeline |
| Franklin Growth Oppo |
| Loomis Sayles E |
Franklin Growth and Loomis Sayles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Loomis Sayles
The main advantage of trading using opposite Franklin Growth and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.| Franklin Growth vs. Massmutual Select Diversified | Franklin Growth vs. Oklahoma College Savings | Franklin Growth vs. Rbc Emerging Markets | Franklin Growth vs. Kinetics Market Opportunities |
| Loomis Sayles vs. Franklin Growth Opportunities | Loomis Sayles vs. Pace Large Growth | Loomis Sayles vs. Ftfa Franklin Templeton Growth | Loomis Sayles vs. Tfa Alphagen Growth |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |