Correlation Between Franklin Gold and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Franklin Gold and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Mainstay Large.
Diversification Opportunities for Franklin Gold and Mainstay Large
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Mainstay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Franklin Gold i.e., Franklin Gold and Mainstay Large go up and down completely randomly.
Pair Corralation between Franklin Gold and Mainstay Large
Assuming the 90 days horizon Franklin Gold is expected to generate 1.1 times less return on investment than Mainstay Large. In addition to that, Franklin Gold is 1.13 times more volatile than Mainstay Large Cap. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.05 per unit of volatility. If you would invest 690.00 in Mainstay Large Cap on September 13, 2024 and sell it today you would earn a total of 269.00 from holding Mainstay Large Cap or generate 38.99% 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. Mainstay Large Cap
Performance |
| Timeline |
| Franklin Gold Precious |
| Mainstay Large Cap |
Franklin Gold and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Mainstay Large
The main advantage of trading using opposite Franklin Gold and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Franklin Gold vs. Franklin Mutual Beacon | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Franklin Mutual Global | Franklin Gold vs. Franklin Mutual Global |
| Mainstay Large vs. Franklin Gold Precious | Mainstay Large vs. Vy Goldman Sachs | Mainstay Large vs. Oppenheimer Gold Special | Mainstay Large vs. Precious Metals And |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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