Correlation Between Emerging Markets and Franklin Gold
Can any of the company-specific risk be diversified away by investing in both Emerging Markets 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 Emerging Markets and Franklin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Debt and Franklin Gold Precious, you can compare the effects of market volatilities on Emerging Markets 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 Emerging Markets with a short position of Franklin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Franklin Gold.
Diversification Opportunities for Emerging Markets and Franklin Gold
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emerging and Franklin is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Debt 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 Emerging Markets 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 Emerging Markets Debt 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 Emerging Markets i.e., Emerging Markets and Franklin Gold go up and down completely randomly.
Pair Corralation between Emerging Markets and Franklin Gold
Assuming the 90 days horizon Emerging Markets Debt is expected to generate 0.14 times more return on investment than Franklin Gold. However, Emerging Markets Debt is 7.1 times less risky than Franklin Gold. It trades about -0.27 of its potential returns per unit of risk. Franklin Gold Precious is currently generating about -0.18 per unit of risk. If you would invest 915.00 in Emerging Markets Debt on September 25, 2024 and sell it today you would lose (49.00) from holding Emerging Markets Debt or give up 5.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Emerging Markets Debt vs. Franklin Gold Precious
Performance |
Timeline |
Emerging Markets Debt |
Franklin Gold Precious |
Emerging Markets and Franklin Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emerging Markets and Franklin Gold
The main advantage of trading using opposite Emerging Markets and Franklin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets 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.Emerging Markets vs. Mid Cap Value | Emerging Markets vs. Equity Growth Fund | Emerging Markets vs. Income Growth Fund | Emerging Markets vs. Diversified Bond Fund |
Franklin Gold vs. Doubleline Yield Opportunities | Franklin Gold vs. Versatile Bond Portfolio | Franklin Gold vs. T Rowe Price | Franklin Gold vs. T Rowe Price |
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.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |