Correlation Between Franklin Gold and Eventide Core
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Eventide Core 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 Eventide Core 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 Eventide Core Bond, you can compare the effects of market volatilities on Franklin Gold and Eventide Core 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 Eventide Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Eventide Core.
Diversification Opportunities for Franklin Gold and Eventide Core
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Eventide is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Eventide Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Core Bond 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 Eventide Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Core Bond has no effect on the direction of Franklin Gold i.e., Franklin Gold and Eventide Core go up and down completely randomly.
Pair Corralation between Franklin Gold and Eventide Core
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 5.13 times more return on investment than Eventide Core. However, Franklin Gold is 5.13 times more volatile than Eventide Core Bond. It trades about 0.07 of its potential returns per unit of risk. Eventide Core Bond is currently generating about 0.03 per unit of risk. If you would invest 1,457 in Franklin Gold Precious on September 14, 2024 and sell it today you would earn a total of 411.00 from holding Franklin Gold Precious or generate 28.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Eventide Core Bond
Performance |
| Timeline |
| Franklin Gold Precious |
| Eventide Core Bond |
Franklin Gold and Eventide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Eventide Core
The main advantage of trading using opposite Franklin Gold and Eventide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Eventide Core 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 Eventide Core will offset losses from the drop in Eventide Core's long position.| Franklin Gold vs. Intermediate Government Bond | Franklin Gold vs. Schwab Government Money | Franklin Gold vs. Payden Government Fund | Franklin Gold vs. Aig Government Money |
| Eventide Core vs. Eventide Core Bond | Eventide Core vs. Eventide Multi Asset Income | Eventide Core vs. Eventide Healthcare Life | Eventide Core vs. Eventide Gilead |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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