Correlation Between Janus Venture and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Janus Venture 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 Janus Venture and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Janus Venture Fund and Franklin Growth Fund, you can compare the effects of market volatilities on Janus Venture 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 Janus Venture with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Janus Venture and Franklin Growth.
Diversification Opportunities for Janus Venture and Franklin Growth
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Janus and Franklin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Janus Venture Fund and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Janus Venture 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 Janus Venture Fund 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 Janus Venture i.e., Janus Venture and Franklin Growth go up and down completely randomly.
Pair Corralation between Janus Venture and Franklin Growth
Assuming the 90 days horizon Janus Venture is expected to generate 1.2 times less return on investment than Franklin Growth. In addition to that, Janus Venture is 1.13 times more volatile than Franklin Growth Fund. It trades about 0.06 of its total potential returns per unit of risk. Franklin Growth Fund is currently generating about 0.08 per unit of volatility. If you would invest 11,784 in Franklin Growth Fund on September 4, 2024 and sell it today you would earn a total of 3,410 from holding Franklin Growth Fund or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Janus Venture Fund vs. Franklin Growth Fund
Performance |
| Timeline |
| Janus Venture |
| Franklin Growth |
Janus Venture and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Janus Venture and Franklin Growth
The main advantage of trading using opposite Janus Venture and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Janus Venture 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.| Janus Venture vs. Janus Enterprise Fund | Janus Venture vs. Blackrock Bd Fd | Janus Venture vs. Emerging Markets Fund | Janus Venture vs. New World Fund |
| Franklin Growth vs. Franklin Mutual Beacon | Franklin Growth vs. Templeton Developing Markets | Franklin Growth vs. Franklin Mutual Global | Franklin Growth vs. Franklin Mutual Global |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| 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 | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |