Correlation Between Voya Government and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Voya Government and Franklin Growth 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 Voya Government and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Government Money and Franklin Growth Fund, you can compare the effects of market volatilities on Voya Government and Franklin Growth 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 Voya Government with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Government and Franklin Growth.
Diversification Opportunities for Voya Government and Franklin Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Voya and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Government Money and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Voya Government 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 Voya Government Money are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth has no effect on the direction of Voya Government i.e., Voya Government and Franklin Growth go up and down completely randomly.
Pair Corralation between Voya Government and Franklin Growth
If you would invest 13,725 in Franklin Growth Fund on October 25, 2024 and sell it today you would earn a total of 282.00 from holding Franklin Growth Fund or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Government Money vs. Franklin Growth Fund
Performance |
| Timeline |
| Voya Government Money |
| Franklin Growth |
Voya Government and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Government and Franklin Growth
The main advantage of trading using opposite Voya Government and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Government position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Voya Government vs. Tekla Healthcare Investors | Voya Government vs. Fidelity Advisor Health | Voya Government vs. Hartford Healthcare Hls | Voya Government vs. Highland Longshort Healthcare |
| Franklin Growth vs. Voya Government Money | Franklin Growth vs. Aig Government Money | Franklin Growth vs. Virtus Seix Government | Franklin Growth vs. Short Term Government Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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