Correlation Between Franklin Gold and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Templeton 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 Templeton 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 Templeton Global Balanced, you can compare the effects of market volatilities on Franklin Gold and Templeton 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Templeton Global.
Diversification Opportunities for Franklin Gold and Templeton Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Templeton is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Templeton Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Balanced 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Balanced has no effect on the direction of Franklin Gold i.e., Franklin Gold and Templeton Global go up and down completely randomly.
Pair Corralation between Franklin Gold and Templeton Global
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 2.87 times more return on investment than Templeton Global. However, Franklin Gold is 2.87 times more volatile than Templeton Global Balanced. It trades about 0.12 of its potential returns per unit of risk. Templeton Global Balanced is currently generating about 0.05 per unit of risk. If you would invest 1,131 in Franklin Gold Precious on November 8, 2024 and sell it today you would earn a total of 707.00 from holding Franklin Gold Precious or generate 62.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Templeton Global Balanced
Performance |
| Timeline |
| Franklin Gold Precious |
| Templeton Global Balanced |
Franklin Gold and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Templeton Global
The main advantage of trading using opposite Franklin Gold and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Templeton 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Franklin Gold vs. Goldman Sachs Clean | Franklin Gold vs. Gabelli Gold Fund | Franklin Gold vs. Goldman Sachs Mid | Franklin Gold vs. Precious Metals And |
| Templeton Global vs. Intal High Relative | Templeton Global vs. Barings High Yield | Templeton Global vs. Chartwell Short Duration | Templeton Global vs. Calamos High Income |
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 CEOs Directory module to screen CEOs from public companies around the world.
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