Correlation Between Voya Vacs and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Voya Vacs and Franklin Mutual 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 Vacs and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Vacs Series and Franklin Mutual Global, you can compare the effects of market volatilities on Voya Vacs and Franklin Mutual 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 Vacs with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Vacs and Franklin Mutual.
Diversification Opportunities for Voya Vacs and Franklin Mutual
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Voya and Franklin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Voya Vacs Series and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Voya Vacs 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 Vacs Series are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Voya Vacs i.e., Voya Vacs and Franklin Mutual go up and down completely randomly.
Pair Corralation between Voya Vacs and Franklin Mutual
Assuming the 90 days horizon Voya Vacs Series is expected to generate 1.2 times more return on investment than Franklin Mutual. However, Voya Vacs is 1.2 times more volatile than Franklin Mutual Global. It trades about 0.04 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.03 per unit of risk. If you would invest 1,020 in Voya Vacs Series on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Voya Vacs Series or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
Voya Vacs Series vs. Franklin Mutual Global
Performance |
| Timeline |
| Voya Vacs Series |
| Franklin Mutual Global |
Voya Vacs and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Vacs and Franklin Mutual
The main advantage of trading using opposite Voya Vacs and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Vacs position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Voya Vacs vs. American Funds New | Voya Vacs vs. SCOR PK | Voya Vacs vs. Morningstar Unconstrained Allocation | Voya Vacs vs. Via Renewables |
| Franklin Mutual vs. Qs Large Cap | Franklin Mutual vs. American Mutual Fund | Franklin Mutual vs. Virtus Nfj Large Cap | Franklin Mutual vs. Avantis Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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