Correlation Between Franklin Gold and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Sterling Capital 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 Sterling Capital 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 Sterling Capital Porate, you can compare the effects of market volatilities on Franklin Gold and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Sterling Capital.
Diversification Opportunities for Franklin Gold and Sterling Capital
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Sterling is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Sterling Capital Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Porate 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Porate has no effect on the direction of Franklin Gold i.e., Franklin Gold and Sterling Capital go up and down completely randomly.
Pair Corralation between Franklin Gold and Sterling Capital
If you would invest 0.00 in Sterling Capital Porate on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Sterling Capital Porate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Franklin Gold Precious vs. Sterling Capital Porate
Performance |
| Timeline |
| Franklin Gold Precious |
| Sterling Capital Porate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Gold and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Sterling Capital
The main advantage of trading using opposite Franklin Gold and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital'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 |
| Sterling Capital vs. Vanguard Strategic Small Cap | Sterling Capital vs. Archer Balanced Fund | Sterling Capital vs. Lord Abbett Diversified | Sterling Capital vs. Eic Value Fund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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