Correlation Between Franklin Gold and Unconstrained Bond
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Unconstrained Bond 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 Unconstrained Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold And and Unconstrained Bond Series, you can compare the effects of market volatilities on Franklin Gold and Unconstrained Bond 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 Unconstrained Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Unconstrained Bond.
Diversification Opportunities for Franklin Gold and Unconstrained Bond
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Unconstrained is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold And and Unconstrained Bond Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unconstrained Bond Series 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 And are associated (or correlated) with Unconstrained Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unconstrained Bond Series has no effect on the direction of Franklin Gold i.e., Franklin Gold and Unconstrained Bond go up and down completely randomly.
Pair Corralation between Franklin Gold and Unconstrained Bond
Assuming the 90 days horizon Franklin Gold And is expected to generate 17.46 times more return on investment than Unconstrained Bond. However, Franklin Gold is 17.46 times more volatile than Unconstrained Bond Series. It trades about 0.26 of its potential returns per unit of risk. Unconstrained Bond Series is currently generating about 0.24 per unit of risk. If you would invest 3,210 in Franklin Gold And on July 27, 2025 and sell it today you would earn a total of 1,308 from holding Franklin Gold And or generate 40.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold And vs. Unconstrained Bond Series
Performance |
| Timeline |
| Franklin Gold And |
| Unconstrained Bond Series |
Franklin Gold and Unconstrained Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Unconstrained Bond
The main advantage of trading using opposite Franklin Gold and Unconstrained Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Unconstrained Bond 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 Unconstrained Bond will offset losses from the drop in Unconstrained Bond's long position.| Franklin Gold vs. Baron Health Care | Franklin Gold vs. Blackrock Health Sciences | Franklin Gold vs. Eventide Healthcare Life | Franklin Gold vs. Fidelity Advisor Health |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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