Correlation Between Goldman Sachs and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs 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 Goldman Sachs and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Centrated and Franklin Growth Opportunities, you can compare the effects of market volatilities on Goldman Sachs 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 Goldman Sachs with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Franklin Growth.
Diversification Opportunities for Goldman Sachs and Franklin Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Goldman and Franklin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Centrated 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 Goldman Sachs 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 Goldman Sachs Centrated 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 Goldman Sachs i.e., Goldman Sachs and Franklin Growth go up and down completely randomly.
Pair Corralation between Goldman Sachs and Franklin Growth
Assuming the 90 days horizon Goldman Sachs Centrated is expected to generate 0.75 times more return on investment than Franklin Growth. However, Goldman Sachs Centrated is 1.34 times less risky than Franklin Growth. It trades about -0.19 of its potential returns per unit of risk. Franklin Growth Opportunities is currently generating about -0.22 per unit of risk. If you would invest 1,581 in Goldman Sachs Centrated on January 27, 2024 and sell it today you would lose (50.00) from holding Goldman Sachs Centrated or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Goldman Sachs Centrated vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Goldman Sachs Centrated |
| Franklin Growth Oppo |
Goldman Sachs and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Franklin Growth
The main advantage of trading using opposite Goldman Sachs and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs 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.| Goldman Sachs vs. Victory Rs Partners | Goldman Sachs vs. Small Cap Value | Goldman Sachs vs. Perkins Small Cap | Goldman Sachs vs. Hennessy Nerstone Mid |
| Franklin Growth vs. Gabelli Global Financial | Franklin Growth vs. Transamerica Financial Life | Franklin Growth vs. Angel Oak Financial | Franklin Growth vs. Prudential Jennison Financial |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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