Correlation Between One Choice and Franklin Gold
Can any of the company-specific risk be diversified away by investing in both One Choice 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 One Choice and Franklin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Choice Portfolio and Franklin Gold Precious, you can compare the effects of market volatilities on One Choice 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 One Choice with a short position of Franklin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Choice and Franklin Gold.
Diversification Opportunities for One Choice and Franklin Gold
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between One and Franklin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding One Choice Portfolio 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 One Choice 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 One Choice Portfolio 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 One Choice i.e., One Choice and Franklin Gold go up and down completely randomly.
Pair Corralation between One Choice and Franklin Gold
Assuming the 90 days horizon One Choice is expected to generate 15.01 times less return on investment than Franklin Gold. But when comparing it to its historical volatility, One Choice Portfolio is 5.42 times less risky than Franklin Gold. It trades about 0.08 of its potential returns per unit of risk. Franklin Gold Precious is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,380 in Franklin Gold Precious on August 18, 2025 and sell it today you would earn a total of 1,250 from holding Franklin Gold Precious or generate 36.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Choice Portfolio vs. Franklin Gold Precious
Performance |
| Timeline |
| One Choice Portfolio |
| Franklin Gold Precious |
One Choice and Franklin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Choice and Franklin Gold
The main advantage of trading using opposite One Choice and Franklin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Choice 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.| One Choice vs. Lazard International Strategic | One Choice vs. Lazard International Strategic | One Choice vs. Fam Value Fund | One Choice vs. Columbia Small Cap |
| Franklin Gold vs. Sprott Gold Equity | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Clearbridge Mid 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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