Correlation Between Franklin Gold and Calvert International
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Calvert International 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 Calvert International 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 Calvert International Equity, you can compare the effects of market volatilities on Franklin Gold and Calvert International 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 Calvert International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Calvert International.
Diversification Opportunities for Franklin Gold and Calvert International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Calvert is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Calvert International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert International 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 Calvert International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert International has no effect on the direction of Franklin Gold i.e., Franklin Gold and Calvert International go up and down completely randomly.
Pair Corralation between Franklin Gold and Calvert International
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 1.54 times more return on investment than Calvert International. However, Franklin Gold is 1.54 times more volatile than Calvert International Equity. It trades about 0.54 of its potential returns per unit of risk. Calvert International Equity is currently generating about 0.28 per unit of risk. If you would invest 1,584 in Franklin Gold Precious on November 9, 2024 and sell it today you would earn a total of 245.00 from holding Franklin Gold Precious or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Calvert International Equity
Performance |
| Timeline |
| Franklin Gold Precious |
| Calvert International |
Franklin Gold and Calvert International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Calvert International
The main advantage of trading using opposite Franklin Gold and Calvert International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Calvert International 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 Calvert International will offset losses from the drop in Calvert International's long position.| Franklin Gold vs. Goldman Sachs Clean | Franklin Gold vs. Gabelli Gold Fund | Franklin Gold vs. Precious Metals And | Franklin Gold vs. James Balanced Golden |
| Calvert International vs. Franklin Moderate Allocation | Calvert International vs. Knights Of Umbus | Calvert International vs. T Rowe Price | Calvert International vs. Calvert Moderate Allocation |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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