Correlation Between Franklin Gold and Putnam Global
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Putnam Global 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 Putnam Global 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 Putnam Global Industrials, you can compare the effects of market volatilities on Franklin Gold and Putnam Global 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 Putnam Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Putnam Global.
Diversification Opportunities for Franklin Gold and Putnam Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Putnam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Putnam Global Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Global Industrials 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 Putnam Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Global Industrials has no effect on the direction of Franklin Gold i.e., Franklin Gold and Putnam Global go up and down completely randomly.
Pair Corralation between Franklin Gold and Putnam Global
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 1.72 times more return on investment than Putnam Global. However, Franklin Gold is 1.72 times more volatile than Putnam Global Industrials. It trades about 0.09 of its potential returns per unit of risk. Putnam Global Industrials is currently generating about 0.08 per unit of risk. If you would invest 1,303 in Franklin Gold Precious on September 14, 2024 and sell it today you would earn a total of 565.00 from holding Franklin Gold Precious or generate 43.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Putnam Global Industrials
Performance |
| Timeline |
| Franklin Gold Precious |
| Putnam Global Industrials |
Franklin Gold and Putnam Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Putnam Global
The main advantage of trading using opposite Franklin Gold and Putnam Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Putnam Global 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 Putnam Global will offset losses from the drop in Putnam Global's long position.| Franklin Gold vs. Intermediate Government Bond | Franklin Gold vs. Schwab Government Money | Franklin Gold vs. Payden Government Fund | Franklin Gold vs. Aig Government Money |
| Putnam Global vs. Precious Metals And | Putnam Global vs. Franklin Gold Precious | Putnam Global vs. International Investors Gold | Putnam Global vs. Invesco Gold Special |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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