Correlation Between Franklin Gold and Putnam Short
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Putnam Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Franklin Gold and Putnam Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Putnam Short.
Diversification Opportunities for Franklin Gold and Putnam Short
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Putnam is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Putnam Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Short Duration has no effect on the direction of Franklin Gold i.e., Franklin Gold and Putnam Short go up and down completely randomly.
Pair Corralation between Franklin Gold and Putnam Short
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 16.63 times more return on investment than Putnam Short. However, Franklin Gold is 16.63 times more volatile than Putnam Short Duration. It trades about 0.04 of its potential returns per unit of risk. Putnam Short Duration is currently generating about 0.22 per unit of risk. If you would invest 1,426 in Franklin Gold Precious on September 12, 2024 and sell it today you would earn a total of 440.00 from holding Franklin Gold Precious or generate 30.86% 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. Putnam Short Duration
Performance |
| Timeline |
| Franklin Gold Precious |
| Putnam Short Duration |
Franklin Gold and Putnam Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Putnam Short
The main advantage of trading using opposite Franklin Gold and Putnam Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Putnam Short 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 Short will offset losses from the drop in Putnam Short's 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 |
| Putnam Short vs. Gabelli Gold Fund | Putnam Short vs. Gold And Precious | Putnam Short vs. Europac Gold Fund | Putnam Short 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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