Correlation Between Franklin Growth and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Goldman Sachs 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 Growth and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Allocation and Goldman Sachs Technology, you can compare the effects of market volatilities on Franklin Growth and Goldman Sachs 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 Growth with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Goldman Sachs.
Diversification Opportunities for Franklin Growth and Goldman Sachs
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Goldman is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Allocation and Goldman Sachs Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Technology and Franklin Growth 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 Growth Allocation are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Technology has no effect on the direction of Franklin Growth i.e., Franklin Growth and Goldman Sachs go up and down completely randomly.
Pair Corralation between Franklin Growth and Goldman Sachs
Assuming the 90 days horizon Franklin Growth is expected to generate 2.09 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Franklin Growth Allocation is 1.68 times less risky than Goldman Sachs. It trades about 0.08 of its potential returns per unit of risk. Goldman Sachs Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,613 in Goldman Sachs Technology on October 25, 2024 and sell it today you would earn a total of 76.00 from holding Goldman Sachs Technology or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Allocation vs. Goldman Sachs Technology
Performance |
| Timeline |
| Franklin Growth Allo |
| Goldman Sachs Technology |
Franklin Growth and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Goldman Sachs
The main advantage of trading using opposite Franklin Growth and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Franklin Growth vs. Ab Small Cap | Franklin Growth vs. Astoncrosswind Small Cap | Franklin Growth vs. Goldman Sachs Smallmid | Franklin Growth vs. Sp Smallcap 600 |
| Goldman Sachs vs. Qs Small Capitalization | Goldman Sachs vs. Rational Dividend Capture | Goldman Sachs vs. Small Midcap Dividend Income | Goldman Sachs vs. Shelton E Value |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |