Correlation Between Franklin Gold and Clearbridge Select
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Clearbridge Select 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 Clearbridge Select 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 Clearbridge Select, you can compare the effects of market volatilities on Franklin Gold and Clearbridge Select 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 Clearbridge Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Clearbridge Select.
Diversification Opportunities for Franklin Gold and Clearbridge Select
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and ClearBridge is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Clearbridge Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Select 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 Clearbridge Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Select has no effect on the direction of Franklin Gold i.e., Franklin Gold and Clearbridge Select go up and down completely randomly.
Pair Corralation between Franklin Gold and Clearbridge Select
Assuming the 90 days horizon Franklin Gold is expected to generate 1.29 times less return on investment than Clearbridge Select. In addition to that, Franklin Gold is 1.63 times more volatile than Clearbridge Select. It trades about 0.04 of its total potential returns per unit of risk. Clearbridge Select is currently generating about 0.09 per unit of volatility. If you would invest 3,629 in Clearbridge Select on September 5, 2024 and sell it today you would earn a total of 2,040 from holding Clearbridge Select or generate 56.21% 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. Clearbridge Select
Performance |
| Timeline |
| Franklin Gold Precious |
| Clearbridge Select |
Franklin Gold and Clearbridge Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Clearbridge Select
The main advantage of trading using opposite Franklin Gold and Clearbridge Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Clearbridge Select 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 Clearbridge Select will offset losses from the drop in Clearbridge Select's long position.| Franklin Gold vs. Aqr Large Cap | Franklin Gold vs. Americafirst Large Cap | Franklin Gold vs. Avantis Large Cap | Franklin Gold vs. Qs Large Cap |
| Clearbridge Select vs. Franklin Gold Precious | Clearbridge Select vs. Vy Goldman Sachs | Clearbridge Select vs. Gamco Global Gold | Clearbridge Select vs. Goldman Sachs Clean |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |