Correlation Between Gabelli Gold and Franklin Small
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Franklin Small 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 Gabelli Gold and Franklin Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Gold Fund and Franklin Small Cap, you can compare the effects of market volatilities on Gabelli Gold and Franklin Small 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 Gabelli Gold with a short position of Franklin Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Franklin Small.
Diversification Opportunities for Gabelli Gold and Franklin Small
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Franklin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Franklin Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Small Cap and Gabelli 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 Gabelli Gold Fund are associated (or correlated) with Franklin Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Small Cap has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Franklin Small go up and down completely randomly.
Pair Corralation between Gabelli Gold and Franklin Small
Assuming the 90 days horizon Gabelli Gold Fund is expected to under-perform the Franklin Small. In addition to that, Gabelli Gold is 1.47 times more volatile than Franklin Small Cap. It trades about -0.2 of its total potential returns per unit of risk. Franklin Small Cap is currently generating about -0.14 per unit of volatility. If you would invest 1,681 in Franklin Small Cap on October 10, 2024 and sell it today you would lose (62.00) from holding Franklin Small Cap or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Franklin Small Cap
Performance |
| Timeline |
| Gabelli Gold |
| Franklin Small Cap |
Gabelli Gold and Franklin Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Franklin Small
The main advantage of trading using opposite Gabelli Gold and Franklin Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Franklin Small 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 Franklin Small will offset losses from the drop in Franklin Small's long position.| Gabelli Gold vs. Highland Longshort Healthcare | Gabelli Gold vs. Blackrock Health Sciences | Gabelli Gold vs. Alphacentric Lifesci Healthcare | Gabelli Gold vs. Delaware Healthcare Fund |
| Franklin Small vs. Blackrock All Cap Energy | Franklin Small vs. Goehring Rozencwajg Resources | Franklin Small vs. Icon Natural Resources | Franklin Small vs. Tortoise Energy Independence |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |