Correlation Between Franklin California and Qs Growth
Can any of the company-specific risk be diversified away by investing in both Franklin California and Qs 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 Franklin California and Qs Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin California High and Qs Growth Fund, you can compare the effects of market volatilities on Franklin California and Qs 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 Franklin California with a short position of Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin California and Qs Growth.
Diversification Opportunities for Franklin California and Qs Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and LLLRX is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Franklin California High and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund and Franklin California 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 California High are associated (or correlated) with Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of Franklin California i.e., Franklin California and Qs Growth go up and down completely randomly.
Pair Corralation between Franklin California and Qs Growth
Assuming the 90 days horizon Franklin California High is expected to generate 0.33 times more return on investment than Qs Growth. However, Franklin California High is 3.06 times less risky than Qs Growth. It trades about 0.43 of its potential returns per unit of risk. Qs Growth Fund is currently generating about 0.13 per unit of risk. If you would invest 924.00 in Franklin California High on July 26, 2025 and sell it today you would earn a total of 53.00 from holding Franklin California High or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin California High vs. Qs Growth Fund
Performance |
| Timeline |
| Franklin California High |
| Qs Growth Fund |
Franklin California and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin California and Qs Growth
The main advantage of trading using opposite Franklin California and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin California position performs unexpectedly, Qs 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 Qs Growth will offset losses from the drop in Qs Growth's long position.| Franklin California vs. Saat Tax Managed Aggressive | Franklin California vs. Aggressive Balanced Allocation | Franklin California vs. Intal High Relative | Franklin California vs. Ab High Income |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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