Correlation Between Franklin Real and Guidepath(r) Managed
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Guidepath(r) Managed 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 Real and Guidepath(r) Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Guidepath Managed Futures, you can compare the effects of market volatilities on Franklin Real and Guidepath(r) Managed 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 Real with a short position of Guidepath(r) Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Guidepath(r) Managed.
Diversification Opportunities for Franklin Real and Guidepath(r) Managed
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Guidepath(r) is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures and Franklin Real 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 Real Estate are associated (or correlated) with Guidepath(r) Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Franklin Real i.e., Franklin Real and Guidepath(r) Managed go up and down completely randomly.
Pair Corralation between Franklin Real and Guidepath(r) Managed
Assuming the 90 days horizon Franklin Real is expected to generate 1.07 times less return on investment than Guidepath(r) Managed. In addition to that, Franklin Real is 2.1 times more volatile than Guidepath Managed Futures. It trades about 0.03 of its total potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.07 per unit of volatility. If you would invest 650.00 in Guidepath Managed Futures on June 3, 2025 and sell it today you would earn a total of 11.00 from holding Guidepath Managed Futures or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Real Estate vs. Guidepath Managed Futures
Performance |
| Timeline |
| Franklin Real Estate |
| Guidepath Managed Futures |
Franklin Real and Guidepath(r) Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Guidepath(r) Managed
The main advantage of trading using opposite Franklin Real and Guidepath(r) Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Guidepath(r) Managed 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 Guidepath(r) Managed will offset losses from the drop in Guidepath(r) Managed's long position.| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Utilities Fund |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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