Correlation Between Franklin Gold and Value Line
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Value Line 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 Gold and Value Line into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold Precious and Value Line Mid, you can compare the effects of market volatilities on Franklin Gold and Value Line 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 Gold with a short position of Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Value Line.
Diversification Opportunities for Franklin Gold and Value Line
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Value is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Value Line Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line Mid and Franklin Gold 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 Gold Precious are associated (or correlated) with Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line Mid has no effect on the direction of Franklin Gold i.e., Franklin Gold and Value Line go up and down completely randomly.
Pair Corralation between Franklin Gold and Value Line
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 3.09 times more return on investment than Value Line. However, Franklin Gold is 3.09 times more volatile than Value Line Mid. It trades about 0.21 of its potential returns per unit of risk. Value Line Mid is currently generating about -0.04 per unit of risk. If you would invest 3,408 in Franklin Gold Precious on August 21, 2025 and sell it today you would earn a total of 1,163 from holding Franklin Gold Precious or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Value Line Mid
Performance |
| Timeline |
| Franklin Gold Precious |
| Value Line Mid |
Franklin Gold and Value Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Value Line
The main advantage of trading using opposite Franklin Gold and Value Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Value Line 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 Value Line will offset losses from the drop in Value Line's long position.| Franklin Gold vs. Sprott Gold Equity | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Clearbridge Mid Cap |
| Value Line vs. Siit Dynamic Asset | Value Line vs. Income Growth Fund | Value Line vs. Baron Discovery Fund | Value Line vs. Siit Large 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |