Correlation Between Pimco Global and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Pimco Global 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 Pimco Global and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Global Multi Asset and Franklin Growth Opportunities, you can compare the effects of market volatilities on Pimco Global 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 Pimco Global with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Global and Franklin Growth.
Diversification Opportunities for Pimco Global and Franklin Growth
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pimco and Franklin is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Global Multi Asset and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo and Pimco Global 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 Pimco Global Multi Asset 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 Oppo has no effect on the direction of Pimco Global i.e., Pimco Global and Franklin Growth go up and down completely randomly.
Pair Corralation between Pimco Global and Franklin Growth
Assuming the 90 days horizon Pimco Global Multi Asset is expected to generate 0.37 times more return on investment than Franklin Growth. However, Pimco Global Multi Asset is 2.72 times less risky than Franklin Growth. It trades about 0.09 of its potential returns per unit of risk. Franklin Growth Opportunities is currently generating about -0.2 per unit of risk. If you would invest 1,491 in Pimco Global Multi Asset on December 1, 2024 and sell it today you would earn a total of 12.00 from holding Pimco Global Multi Asset or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Global Multi Asset vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Pimco Global Multi |
| Franklin Growth Oppo |
Pimco Global and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Global and Franklin Growth
The main advantage of trading using opposite Pimco Global and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Global 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.| Pimco Global vs. Transamerica Financial Life | Pimco Global vs. Fidelity Small Cap | Pimco Global vs. T Rowe Price | Pimco Global vs. Valic Company I |
| Franklin Growth vs. Ultra Short Fixed Income | Franklin Growth vs. T Rowe Price | Franklin Growth vs. Gmo Global Equity | Franklin Growth vs. Tax Managed International Equity |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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