Correlation Between Franklin Gold and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Baird Strategic 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 Baird Strategic 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 Baird Strategic Municipal, you can compare the effects of market volatilities on Franklin Gold and Baird Strategic 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 Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Baird Strategic.
Diversification Opportunities for Franklin Gold and Baird Strategic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Baird is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal 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 Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Franklin Gold i.e., Franklin Gold and Baird Strategic go up and down completely randomly.
Pair Corralation between Franklin Gold and Baird Strategic
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 12.53 times more return on investment than Baird Strategic. However, Franklin Gold is 12.53 times more volatile than Baird Strategic Municipal. It trades about 0.1 of its potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.12 per unit of risk. If you would invest 1,365 in Franklin Gold Precious on September 1, 2024 and sell it today you would earn a total of 502.00 from holding Franklin Gold Precious or generate 36.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Baird Strategic Municipal
Performance |
| Timeline |
| Franklin Gold Precious |
| Baird Strategic Municipal |
Franklin Gold and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Baird Strategic
The main advantage of trading using opposite Franklin Gold and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Franklin Gold vs. Franklin Emerging Market | Franklin Gold vs. Transamerica Emerging Markets | Franklin Gold vs. Eagle Mlp Strategy | Franklin Gold vs. Goldman Sachs Emerging |
| Baird Strategic vs. Baird Aggregate Bond | Baird Strategic vs. Baird Aggregate Bond | Baird Strategic vs. Baird Short Term Bond | Baird Strategic vs. Baird Short Term Bond |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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