Correlation Between Franklin Real and Voya Russia
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Voya Russia 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 Real and Voya Russia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Voya Russia Fund, you can compare the effects of market volatilities on Franklin Real and Voya Russia 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 Real with a short position of Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Voya Russia.
Diversification Opportunities for Franklin Real and Voya Russia
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and VOYA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund and Franklin Real 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 Real Estate are associated (or correlated) with Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Franklin Real i.e., Franklin Real and Voya Russia go up and down completely randomly.
Pair Corralation between Franklin Real and Voya Russia
If you would invest 1,946 in Franklin Real Estate on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Franklin Real Estate or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Franklin Real Estate vs. Voya Russia Fund
Performance |
| Timeline |
| Franklin Real Estate |
| Voya Russia Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Real and Voya Russia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Voya Russia
The main advantage of trading using opposite Franklin Real and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Voya Russia 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 Russia will offset losses from the drop in Voya Russia's long position.| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
| Voya Russia vs. Dunham Real Estate | Voya Russia vs. Virtus Real Estate | Voya Russia vs. Tiaa Cref Real Estate | Voya Russia vs. American Century Global |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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