Correlation Between Franklin Exponential and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Franklin Exponential and Goldman Sachs 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 Franklin Exponential and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Exponential Data and Goldman Sachs Innovate, you can compare the effects of market volatilities on Franklin Exponential and Goldman Sachs 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 Franklin Exponential with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Exponential and Goldman Sachs.
Diversification Opportunities for Franklin Exponential and Goldman Sachs
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Goldman is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Exponential Data and Goldman Sachs Innovate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Innovate and Franklin Exponential 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 Franklin Exponential Data are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Innovate has no effect on the direction of Franklin Exponential i.e., Franklin Exponential and Goldman Sachs go up and down completely randomly.
Pair Corralation between Franklin Exponential and Goldman Sachs
Given the investment horizon of 90 days Franklin Exponential Data is expected to generate 1.4 times more return on investment than Goldman Sachs. However, Franklin Exponential is 1.4 times more volatile than Goldman Sachs Innovate. It trades about 0.3 of its potential returns per unit of risk. Goldman Sachs Innovate is currently generating about 0.19 per unit of risk. If you would invest 2,442 in Franklin Exponential Data on August 25, 2024 and sell it today you would earn a total of 220.00 from holding Franklin Exponential Data or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Exponential Data vs. Goldman Sachs Innovate
Performance |
| Timeline |
| Franklin Exponential Data |
| Goldman Sachs Innovate |
Franklin Exponential and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Exponential and Goldman Sachs
The main advantage of trading using opposite Franklin Exponential and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Exponential position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Franklin Exponential vs. Franklin Disruptive Commerce | Franklin Exponential vs. Franklin Templeton ETF | Franklin Exponential vs. Esoterica NextG Economy | Franklin Exponential vs. TrueShares Technology AI |
| Goldman Sachs vs. Innovator Loup Frontier | Goldman Sachs vs. Goldman Sachs Future | Goldman Sachs vs. SPDR Kensho New |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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