Correlation Between Franklin Gold and Dreyfus Global
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Dreyfus Global 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 Dreyfus Global 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 Dreyfus Global Real, you can compare the effects of market volatilities on Franklin Gold and Dreyfus Global 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 Dreyfus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Dreyfus Global.
Diversification Opportunities for Franklin Gold and Dreyfus Global
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Dreyfus is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Dreyfus Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Global Real 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 Dreyfus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Global Real has no effect on the direction of Franklin Gold i.e., Franklin Gold and Dreyfus Global go up and down completely randomly.
Pair Corralation between Franklin Gold and Dreyfus Global
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 3.85 times more return on investment than Dreyfus Global. However, Franklin Gold is 3.85 times more volatile than Dreyfus Global Real. It trades about 0.14 of its potential returns per unit of risk. Dreyfus Global Real is currently generating about -0.06 per unit of risk. If you would invest 3,242 in Franklin Gold Precious on September 12, 2025 and sell it today you would earn a total of 700.00 from holding Franklin Gold Precious or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Franklin Gold Precious vs. Dreyfus Global Real
Performance |
| Timeline |
| Franklin Gold Precious |
| Dreyfus Global Real |
Franklin Gold and Dreyfus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Dreyfus Global
The main advantage of trading using opposite Franklin Gold and Dreyfus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Dreyfus Global 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 Dreyfus Global will offset losses from the drop in Dreyfus Global's long position.| Franklin Gold vs. Putnam Equity Income | Franklin Gold vs. Franklin Mutual Beacon | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Franklin Mutual Global |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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