Correlation Between Franklin Gold and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Amg Yacktman 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 Amg Yacktman 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 Amg Yacktman Special, you can compare the effects of market volatilities on Franklin Gold and Amg Yacktman 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 Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Amg Yacktman.
Diversification Opportunities for Franklin Gold and Amg Yacktman
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Amg is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Amg Yacktman Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Special 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 Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Special has no effect on the direction of Franklin Gold i.e., Franklin Gold and Amg Yacktman go up and down completely randomly.
Pair Corralation between Franklin Gold and Amg Yacktman
Assuming the 90 days horizon Franklin Gold Precious is expected to under-perform the Amg Yacktman. In addition to that, Franklin Gold is 3.24 times more volatile than Amg Yacktman Special. It trades about -0.2 of its total potential returns per unit of risk. Amg Yacktman Special is currently generating about -0.09 per unit of volatility. If you would invest 1,115 in Amg Yacktman Special on September 4, 2024 and sell it today you would lose (14.00) from holding Amg Yacktman Special or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Amg Yacktman Special
Performance |
| Timeline |
| Franklin Gold Precious |
| Amg Yacktman Special |
Franklin Gold and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Amg Yacktman
The main advantage of trading using opposite Franklin Gold and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Amg Yacktman 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 Amg Yacktman will offset losses from the drop in Amg Yacktman's long position.| Franklin Gold vs. Northern Small Cap | Franklin Gold vs. Wasatch Small Cap | Franklin Gold vs. Harbor Diversified International | Franklin Gold vs. T Rowe Price |
| Amg Yacktman vs. Astor Longshort Fund | Amg Yacktman vs. Ab Select Longshort | Amg Yacktman vs. Barings Active Short | Amg Yacktman vs. Rbc Short Duration |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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