Correlation Between Franklin Growth and Oppenheimer Discovery
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Oppenheimer Discovery 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 Oppenheimer Discovery 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 Oppenheimer Discovery Fd, you can compare the effects of market volatilities on Franklin Growth and Oppenheimer Discovery 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 Oppenheimer Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Oppenheimer Discovery.
Diversification Opportunities for Franklin Growth and Oppenheimer Discovery
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Oppenheimer is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Oppenheimer Discovery Fd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Discovery 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 Oppenheimer Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Discovery has no effect on the direction of Franklin Growth i.e., Franklin Growth and Oppenheimer Discovery go up and down completely randomly.
Pair Corralation between Franklin Growth and Oppenheimer Discovery
Assuming the 90 days horizon Franklin Growth is expected to generate 1.6 times less return on investment than Oppenheimer Discovery. But when comparing it to its historical volatility, Franklin Growth Opportunities is 1.28 times less risky than Oppenheimer Discovery. It trades about 0.17 of its potential returns per unit of risk. Oppenheimer Discovery Fd is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 8,100 in Oppenheimer Discovery Fd on September 3, 2024 and sell it today you would earn a total of 1,456 from holding Oppenheimer Discovery Fd or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Oppenheimer Discovery Fd
Performance |
| Timeline |
| Franklin Growth Oppo |
| Oppenheimer Discovery |
Franklin Growth and Oppenheimer Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Oppenheimer Discovery
The main advantage of trading using opposite Franklin Growth and Oppenheimer Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Oppenheimer Discovery 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 Oppenheimer Discovery will offset losses from the drop in Oppenheimer Discovery's 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 |
| Oppenheimer Discovery vs. Franklin Growth Opportunities | Oppenheimer Discovery vs. Rational Defensive Growth | Oppenheimer Discovery vs. Eip Growth And | Oppenheimer Discovery vs. Small Pany 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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