Correlation Between Franklin Growth and Jackson Square
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Jackson Square 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 Growth and Jackson Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Fund and Jackson Square Smid Cap, you can compare the effects of market volatilities on Franklin Growth and Jackson Square 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 Growth with a short position of Jackson Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Jackson Square.
Diversification Opportunities for Franklin Growth and Jackson Square
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Jackson is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Jackson Square Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Square Smid and Franklin Growth 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 Growth Fund are associated (or correlated) with Jackson Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Square Smid has no effect on the direction of Franklin Growth i.e., Franklin Growth and Jackson Square go up and down completely randomly.
Pair Corralation between Franklin Growth and Jackson Square
Assuming the 90 days horizon Franklin Growth is expected to generate 1.68 times less return on investment than Jackson Square. But when comparing it to its historical volatility, Franklin Growth Fund is 1.54 times less risky than Jackson Square. It trades about 0.12 of its potential returns per unit of risk. Jackson Square Smid Cap is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,760 in Jackson Square Smid Cap on September 13, 2024 and sell it today you would earn a total of 176.00 from holding Jackson Square Smid Cap or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Growth Fund vs. Jackson Square Smid Cap
Performance |
Timeline |
Franklin Growth |
Jackson Square Smid |
Franklin Growth and Jackson Square Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Growth and Jackson Square
The main advantage of trading using opposite Franklin Growth and Jackson Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Jackson Square 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 Jackson Square will offset losses from the drop in Jackson Square's long position.Franklin Growth vs. Vy Jpmorgan Emerging | Franklin Growth vs. Mid Cap 15x Strategy | Franklin Growth vs. Ashmore Emerging Markets | Franklin Growth vs. Shelton Emerging Markets |
Jackson Square vs. Jackson Square Smid Cap | Jackson Square vs. Jackson Square Smid Cap | Jackson Square vs. Virtus Kar Small Cap | Jackson Square vs. William Blair Small Mid |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |