Correlation Between Franklin Gold and Siit High
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Siit High 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 Siit High 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 Siit High Yield, you can compare the effects of market volatilities on Franklin Gold and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Siit High.
Diversification Opportunities for Franklin Gold and Siit High
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Siit is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Franklin Gold i.e., Franklin Gold and Siit High go up and down completely randomly.
Pair Corralation between Franklin Gold and Siit High
Assuming the 90 days horizon Franklin Gold Precious is expected to under-perform the Siit High. In addition to that, Franklin Gold is 7.52 times more volatile than Siit High Yield. It trades about -0.1 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.1 per unit of volatility. If you would invest 704.00 in Siit High Yield on October 17, 2024 and sell it today you would earn a total of 10.00 from holding Siit High Yield or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Siit High Yield
Performance |
| Timeline |
| Franklin Gold Precious |
| Siit High Yield |
Franklin Gold and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Siit High
The main advantage of trading using opposite Franklin Gold and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Franklin Gold vs. Prudential Health Sciences | Franklin Gold vs. The Hartford Healthcare | Franklin Gold vs. Allianzgi Health Sciences | Franklin Gold vs. Invesco Global Health |
| Siit High vs. Great West Goldman Sachs | Siit High vs. World Precious Minerals | Siit High vs. Franklin Gold Precious | Siit High vs. Global Gold 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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