Correlation Between Franklin Gold and Virtus High
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Virtus High 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 Virtus High 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 Virtus High Yield, you can compare the effects of market volatilities on Franklin Gold and Virtus High 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 Virtus High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Virtus High.
Diversification Opportunities for Franklin Gold and Virtus High
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Virtus is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Virtus High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus High Yield 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 Virtus High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus High Yield has no effect on the direction of Franklin Gold i.e., Franklin Gold and Virtus High go up and down completely randomly.
Pair Corralation between Franklin Gold and Virtus High
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 12.81 times more return on investment than Virtus High. However, Franklin Gold is 12.81 times more volatile than Virtus High Yield. It trades about 0.14 of its potential returns per unit of risk. Virtus High Yield is currently generating about -0.02 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 | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Virtus High Yield
Performance |
| Timeline |
| Franklin Gold Precious |
| Virtus High Yield |
Franklin Gold and Virtus High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Virtus High
The main advantage of trading using opposite Franklin Gold and Virtus High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Virtus High 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 Virtus High will offset losses from the drop in Virtus High's long position.| Franklin Gold vs. Goldman Sachs Clean | Franklin Gold vs. Gabelli Gold Fund | Franklin Gold vs. Precious Metals And | Franklin Gold vs. James Balanced Golden |
| Virtus High vs. Calvert Large Cap | Virtus High vs. Great West Large Cap | Virtus High vs. Jhancock Disciplined Value | Virtus High vs. Prudential Qma 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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