Correlation Between Franklin Gold and Ing Series
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Ing Series 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 Gold and Ing Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold Precious and Ing Series Fund, you can compare the effects of market volatilities on Franklin Gold and Ing Series 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 Gold with a short position of Ing Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Ing Series.
Diversification Opportunities for Franklin Gold and Ing Series
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Ing is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Ing Series Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ing Series Fund and Franklin Gold 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 Gold Precious are associated (or correlated) with Ing Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ing Series Fund has no effect on the direction of Franklin Gold i.e., Franklin Gold and Ing Series go up and down completely randomly.
Pair Corralation between Franklin Gold and Ing Series
Assuming the 90 days horizon Franklin Gold is expected to generate 1.82 times less return on investment than Ing Series. In addition to that, Franklin Gold is 1.56 times more volatile than Ing Series Fund. It trades about 0.04 of its total potential returns per unit of risk. Ing Series Fund is currently generating about 0.11 per unit of volatility. If you would invest 1,368 in Ing Series Fund on September 12, 2024 and sell it today you would earn a total of 106.00 from holding Ing Series Fund or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Franklin Gold Precious vs. Ing Series Fund
Performance |
| Timeline |
| Franklin Gold Precious |
| Ing Series Fund |
Franklin Gold and Ing Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Ing Series
The main advantage of trading using opposite Franklin Gold and Ing Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Ing Series 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 Ing Series will offset losses from the drop in Ing Series' long position.| Franklin Gold vs. Columbia Global Technology | Franklin Gold vs. Towpath Technology | Franklin Gold vs. Red Oak Technology | Franklin Gold vs. Goldman Sachs Technology |
| Ing Series vs. Pimco Diversified Income | Ing Series vs. Pioneer Diversified High | Ing Series vs. Davenport Small Cap | Ing Series vs. Adams Diversified Equity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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