Correlation Between Franklin Gold and Infrastructure Fund
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Infrastructure Fund 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 Infrastructure Fund 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 Infrastructure Fund Adviser, you can compare the effects of market volatilities on Franklin Gold and Infrastructure Fund 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 Infrastructure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Infrastructure Fund.
Diversification Opportunities for Franklin Gold and Infrastructure Fund
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Infrastructure is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Infrastructure Fund Adviser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure Fund 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 Infrastructure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure Fund has no effect on the direction of Franklin Gold i.e., Franklin Gold and Infrastructure Fund go up and down completely randomly.
Pair Corralation between Franklin Gold and Infrastructure Fund
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 6.68 times more return on investment than Infrastructure Fund. However, Franklin Gold is 6.68 times more volatile than Infrastructure Fund Adviser. It trades about 0.04 of its potential returns per unit of risk. Infrastructure Fund Adviser is currently generating about 0.18 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 | 95.45% |
| Values | Daily Returns |
Franklin Gold Precious vs. Infrastructure Fund Adviser
Performance |
| Timeline |
| Franklin Gold Precious |
| Infrastructure Fund |
Franklin Gold and Infrastructure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Infrastructure Fund
The main advantage of trading using opposite Franklin Gold and Infrastructure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Infrastructure Fund 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 Infrastructure Fund will offset losses from the drop in Infrastructure Fund'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 |
| Infrastructure Fund vs. Rationalpier 88 Convertible | Infrastructure Fund vs. Gabelli Convertible And | Infrastructure Fund vs. Lord Abbett Convertible | Infrastructure Fund vs. Putnam Convertible Incm Gwth |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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