Correlation Between Vulcan Value and Franklin California
Can any of the company-specific risk be diversified away by investing in both Vulcan Value and Franklin California 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 Vulcan Value and Franklin California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vulcan Value Partners and Franklin California High, you can compare the effects of market volatilities on Vulcan Value and Franklin California 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 Vulcan Value with a short position of Franklin California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vulcan Value and Franklin California.
Diversification Opportunities for Vulcan Value and Franklin California
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vulcan and Franklin is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Vulcan Value Partners and Franklin California High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California High and Vulcan Value 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 Vulcan Value Partners are associated (or correlated) with Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California High has no effect on the direction of Vulcan Value i.e., Vulcan Value and Franklin California go up and down completely randomly.
Pair Corralation between Vulcan Value and Franklin California
Assuming the 90 days horizon Vulcan Value Partners is expected to under-perform the Franklin California. In addition to that, Vulcan Value is 5.37 times more volatile than Franklin California High. It trades about -0.12 of its total potential returns per unit of risk. Franklin California High is currently generating about 0.36 per unit of volatility. If you would invest 933.00 in Franklin California High on August 13, 2025 and sell it today you would earn a total of 43.00 from holding Franklin California High or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vulcan Value Partners vs. Franklin California High
Performance |
| Timeline |
| Vulcan Value Partners |
| Franklin California High |
Vulcan Value and Franklin California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vulcan Value and Franklin California
The main advantage of trading using opposite Vulcan Value and Franklin California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vulcan Value position performs unexpectedly, Franklin California 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 Franklin California will offset losses from the drop in Franklin California's long position.| Vulcan Value vs. Franklin Small Cap | Vulcan Value vs. Qs Small Capitalization | Vulcan Value vs. Siit Small Cap | Vulcan Value vs. Kinetics Small Cap |
| Franklin California vs. Forum Real Estate | Franklin California vs. Great West Real Estate | Franklin California vs. Voya Real Estate | Franklin California vs. Global Real Estate |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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