Correlation Between Voya Intermediate and Franklin Gold
Can any of the company-specific risk be diversified away by investing in both Voya Intermediate and Franklin Gold 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 Intermediate and Franklin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Intermediate Bond and Franklin Gold Precious, you can compare the effects of market volatilities on Voya Intermediate and Franklin Gold 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 Intermediate with a short position of Franklin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Intermediate and Franklin Gold.
Diversification Opportunities for Voya Intermediate and Franklin Gold
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Voya and Franklin is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Voya Intermediate Bond and Franklin Gold Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Gold Precious and Voya Intermediate 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 Intermediate Bond are associated (or correlated) with Franklin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Gold Precious has no effect on the direction of Voya Intermediate i.e., Voya Intermediate and Franklin Gold go up and down completely randomly.
Pair Corralation between Voya Intermediate and Franklin Gold
If you would invest 1,422 in Franklin Gold Precious on September 12, 2024 and sell it today you would earn a total of 444.00 from holding Franklin Gold Precious or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Voya Intermediate Bond vs. Franklin Gold Precious
Performance |
| Timeline |
| Voya Intermediate Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Gold Precious |
Voya Intermediate and Franklin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Intermediate and Franklin Gold
The main advantage of trading using opposite Voya Intermediate and Franklin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Intermediate position performs unexpectedly, Franklin Gold 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 Gold will offset losses from the drop in Franklin Gold's long position.| Voya Intermediate vs. Aqr Large Cap | Voya Intermediate vs. Fidelity Series 1000 | Voya Intermediate vs. Qs Large Cap | Voya Intermediate vs. Touchstone Large Cap |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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