Correlation Between Great-west Loomis and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis 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 Great-west Loomis and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Franklin Growth Fund, you can compare the effects of market volatilities on Great-west Loomis 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 Great-west Loomis with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Franklin Growth.
Diversification Opportunities for Great-west Loomis and Franklin Growth
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great-west and Franklin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Great-west Loomis 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 Great West Loomis Sayles 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 Great-west Loomis i.e., Great-west Loomis and Franklin Growth go up and down completely randomly.
Pair Corralation between Great-west Loomis and Franklin Growth
Assuming the 90 days horizon Great West Loomis Sayles is expected to generate 0.66 times more return on investment than Franklin Growth. However, Great West Loomis Sayles is 1.52 times less risky than Franklin Growth. It trades about -0.26 of its potential returns per unit of risk. Franklin Growth Fund is currently generating about -0.3 per unit of risk. If you would invest 4,103 in Great West Loomis Sayles on October 9, 2024 and sell it today you would lose (238.00) from holding Great West Loomis Sayles or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Franklin Growth Fund
Performance |
| Timeline |
| Great West Loomis |
| Franklin Growth |
Great-west Loomis and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Franklin Growth
The main advantage of trading using opposite Great-west Loomis and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis 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.| Great-west Loomis vs. American Century Etf | Great-west Loomis vs. Valic Company I | Great-west Loomis vs. Northern Small Cap | Great-west Loomis vs. Ultrasmall Cap Profund Ultrasmall Cap |
| Franklin Growth vs. Alliancebernstein Bond | Franklin Growth vs. Barings High Yield | Franklin Growth vs. Bbh Intermediate Municipal | Franklin Growth vs. Siit High Yield |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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