Correlation Between Vy Baron and Franklin International
Can any of the company-specific risk be diversified away by investing in both Vy Baron and Franklin International 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 Vy Baron and Franklin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vy Baron Growth and Franklin International Core, you can compare the effects of market volatilities on Vy Baron and Franklin International 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 Vy Baron with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Baron and Franklin International.
Diversification Opportunities for Vy Baron and Franklin International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBSSX and Franklin is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vy Baron Growth and Franklin International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International and Vy Baron 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 Vy Baron Growth are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Vy Baron i.e., Vy Baron and Franklin International go up and down completely randomly.
Pair Corralation between Vy Baron and Franklin International
Assuming the 90 days horizon Vy Baron is expected to generate 1.32 times less return on investment than Franklin International. In addition to that, Vy Baron is 1.16 times more volatile than Franklin International Core. It trades about 0.03 of its total potential returns per unit of risk. Franklin International Core is currently generating about 0.05 per unit of volatility. If you would invest 1,107 in Franklin International Core on September 14, 2024 and sell it today you would earn a total of 98.00 from holding Franklin International Core or generate 8.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Vy Baron Growth vs. Franklin International Core
Performance |
| Timeline |
| Vy Baron Growth |
| Franklin International |
Vy Baron and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vy Baron and Franklin International
The main advantage of trading using opposite Vy Baron and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy Baron position performs unexpectedly, Franklin International 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 International will offset losses from the drop in Franklin International's long position.| Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Bond Index | Vy Baron vs. Voya Limited Maturity | Vy Baron vs. Voya Limited Maturity |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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