Correlation Between Franklin Gold and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Pacific Funds 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 Pacific Funds 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 Pacific Funds Portfolio, you can compare the effects of market volatilities on Franklin Gold and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Pacific Funds.
Diversification Opportunities for Franklin Gold and Pacific Funds
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Pacific is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Pacific Funds Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Portfolio 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Portfolio has no effect on the direction of Franklin Gold i.e., Franklin Gold and Pacific Funds go up and down completely randomly.
Pair Corralation between Franklin Gold and Pacific Funds
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 4.27 times more return on investment than Pacific Funds. However, Franklin Gold is 4.27 times more volatile than Pacific Funds Portfolio. It trades about 0.11 of its potential returns per unit of risk. Pacific Funds Portfolio is currently generating about 0.04 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 74.00 from holding Franklin Gold Precious or generate 4.01% 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. Pacific Funds Portfolio
Performance |
| Timeline |
| Franklin Gold Precious |
| Pacific Funds Portfolio |
Franklin Gold and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Pacific Funds
The main advantage of trading using opposite Franklin Gold and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' 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 |
| Pacific Funds vs. Firsthand Technology Opportunities | Pacific Funds vs. Blackrock Science Technology | Pacific Funds vs. Technology Ultrasector Profund | Pacific Funds vs. Janus Global Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |