Correlation Between Franklin Gold and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Amg Gwk 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 Amg Gwk 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 Amg Gwk Enhanced, you can compare the effects of market volatilities on Franklin Gold and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Amg Gwk.
Diversification Opportunities for Franklin Gold and Amg Gwk
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Amg is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Amg Gwk Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Enhanced 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Enhanced has no effect on the direction of Franklin Gold i.e., Franklin Gold and Amg Gwk go up and down completely randomly.
Pair Corralation between Franklin Gold and Amg Gwk
If you would invest 1,771 in Franklin Gold Precious on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Franklin Gold Precious or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Franklin Gold Precious vs. Amg Gwk Enhanced
Performance |
| Timeline |
| Franklin Gold Precious |
| Amg Gwk Enhanced |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Gold and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Amg Gwk
The main advantage of trading using opposite Franklin Gold and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk'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 |
| Amg Gwk vs. James Balanced Golden | Amg Gwk vs. First Eagle Gold | Amg Gwk vs. Short Precious Metals | Amg Gwk vs. Franklin Gold Precious |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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