Correlation Between Franklin Gold and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Hartford Small 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 Small 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 Small Pany, you can compare the effects of market volatilities on Franklin Gold and Hartford Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Hartford Small.
Diversification Opportunities for Franklin Gold and Hartford Small
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Hartford is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Hartford Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small Pany 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small Pany has no effect on the direction of Franklin Gold i.e., Franklin Gold and Hartford Small go up and down completely randomly.
Pair Corralation between Franklin Gold and Hartford Small
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 1.62 times more return on investment than Hartford Small. However, Franklin Gold is 1.62 times more volatile than Hartford Small Pany. It trades about 0.04 of its potential returns per unit of risk. Hartford Small Pany is currently generating about -0.05 per unit of risk. If you would invest 1,844 in Franklin Gold Precious on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Franklin Gold Precious or generate 1.19% 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. Hartford Small Pany
Performance |
| Timeline |
| Franklin Gold Precious |
| Hartford Small Pany |
Franklin Gold and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Hartford Small
The main advantage of trading using opposite Franklin Gold and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Hartford Small 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 Small will offset losses from the drop in Hartford Small's 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 |
| Hartford Small vs. Ab Bond Inflation | Hartford Small vs. Goldman Sachs Inflation | Hartford Small vs. Simt Multi Asset Inflation | Hartford Small vs. Schwab Treasury Inflation |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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