Correlation Between Virtus Seix and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Virtus Seix 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 Virtus Seix and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Seix Government and Franklin Growth Fund, you can compare the effects of market volatilities on Virtus Seix 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 Virtus Seix with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Seix and Franklin Growth.
Diversification Opportunities for Virtus Seix and Franklin Growth
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virtus and Franklin is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Seix Government and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Virtus Seix 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 Virtus Seix Government 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 Virtus Seix i.e., Virtus Seix and Franklin Growth go up and down completely randomly.
Pair Corralation between Virtus Seix and Franklin Growth
Assuming the 90 days horizon Virtus Seix is expected to generate 16.4 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Virtus Seix Government is 18.77 times less risky than Franklin Growth. It trades about 0.1 of its potential returns per unit of risk. Franklin Growth Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13,516 in Franklin Growth Fund on November 4, 2024 and sell it today you would earn a total of 224.00 from holding Franklin Growth Fund or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Virtus Seix Government vs. Franklin Growth Fund
Performance |
| Timeline |
| Virtus Seix Government |
| Franklin Growth |
Virtus Seix and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Seix and Franklin Growth
The main advantage of trading using opposite Virtus Seix and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Seix 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.| Virtus Seix vs. Virtus Global Real | Virtus Seix vs. Allianzgi Mid Cap Fund | Virtus Seix vs. Virtus Select Mlp | Virtus Seix vs. Virtus Rampart Enhanced |
| Franklin Growth vs. Global Diversified Income | Franklin Growth vs. Jhancock Diversified Macro | Franklin Growth vs. Wells Fargo Diversified | Franklin Growth vs. Madison Diversified Income |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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