Correlation Between Franklin Gold and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Hartford Global 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 Hartford Global 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 Hartford Global Impact, you can compare the effects of market volatilities on Franklin Gold and Hartford Global 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 Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Hartford Global.
Diversification Opportunities for Franklin Gold and Hartford Global
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Hartford is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact 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 Hartford Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global Impact has no effect on the direction of Franklin Gold i.e., Franklin Gold and Hartford Global go up and down completely randomly.
Pair Corralation between Franklin Gold and Hartford Global
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 2.23 times more return on investment than Hartford Global. However, Franklin Gold is 2.23 times more volatile than Hartford Global Impact. It trades about 0.07 of its potential returns per unit of risk. Hartford Global Impact is currently generating about 0.1 per unit of risk. If you would invest 1,388 in Franklin Gold Precious on September 3, 2024 and sell it today you would earn a total of 449.00 from holding Franklin Gold Precious or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Hartford Global Impact
Performance |
| Timeline |
| Franklin Gold Precious |
| Hartford Global Impact |
Franklin Gold and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Hartford Global
The main advantage of trading using opposite Franklin Gold and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Hartford Global 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 Hartford Global will offset losses from the drop in Hartford Global's long position.| Franklin Gold vs. Rationalpier 88 Convertible | Franklin Gold vs. Gabelli Convertible And | Franklin Gold vs. Calamos Dynamic Convertible | Franklin Gold vs. Absolute Convertible Arbitrage |
| Hartford Global vs. Ab Bond Inflation | Hartford Global vs. Aqr Managed Futures | Hartford Global vs. Ab Bond Inflation | Hartford Global vs. Aqr Managed Futures |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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