Correlation Between GoPro and Franklin Income
Can any of the company-specific risk be diversified away by investing in both GoPro and Franklin Income 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 GoPro and Franklin Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoPro Inc and Franklin Income Fund, you can compare the effects of market volatilities on GoPro and Franklin Income 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 GoPro with a short position of Franklin Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoPro and Franklin Income.
Diversification Opportunities for GoPro and Franklin Income
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GoPro and Franklin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding GoPro Inc and Franklin Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Me Fund and GoPro 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 GoPro Inc are associated (or correlated) with Franklin Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Me Fund has no effect on the direction of GoPro i.e., GoPro and Franklin Income go up and down completely randomly.
Pair Corralation between GoPro and Franklin Income
Given the investment horizon of 90 days GoPro Inc is expected to under-perform the Franklin Income. In addition to that, GoPro is 4.85 times more volatile than Franklin Income Fund. It trades about -0.67 of its total potential returns per unit of risk. Franklin Income Fund is currently generating about -0.2 per unit of volatility. If you would invest 236.00 in Franklin Income Fund on January 20, 2024 and sell it today you would lose (4.00) from holding Franklin Income Fund or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GoPro Inc vs. Franklin Income Fund
Performance |
| Timeline |
| GoPro Inc |
| Franklin Me Fund |
GoPro and Franklin Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoPro and Franklin Income
The main advantage of trading using opposite GoPro and Franklin Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoPro position performs unexpectedly, Franklin Income 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 Income will offset losses from the drop in Franklin Income's long position.| GoPro vs. LG Display Co | GoPro vs. The Singing Machine | GoPro vs. Wearable Devices | GoPro vs. Zepp Health Corp |
| Franklin Income vs. Franklin Mutual Beacon | Franklin Income vs. Templeton Developing Markets | Franklin Income vs. Franklin Mutual Global | Franklin Income vs. Franklin Mutual Global |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |