Correlation Between Franklin Gold and Campbell Systematic

Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Campbell Systematic 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 Campbell Systematic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Franklin Gold And and Campbell Systematic Macro, you can compare the effects of market volatilities on Franklin Gold and Campbell Systematic 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 Campbell Systematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Campbell Systematic.

Diversification Opportunities for Franklin Gold and Campbell Systematic

0.38

Correlation Coefficient

Franklin Gold  Campbell Systematic

Weak diversification

The 3 months correlation between Franklin and Campbell is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold And and Campbell Systematic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Systematic Macro 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 And are associated (or correlated) with Campbell Systematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Systematic Macro has no effect on the direction of Franklin Gold i.e., Franklin Gold and Campbell Systematic go up and down completely randomly.

Pair Corralation between Franklin Gold and Campbell Systematic

If you would invest  1,803  in Franklin Gold And on January 20, 2024 and sell it today you would earn a total of  223.00  from holding Franklin Gold And or generate 12.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Franklin Gold And  vs.  Campbell Systematic Macro

Franklin Gold And

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Gold And are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Franklin Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Campbell Systematic Macro

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Campbell Systematic Macro has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Campbell Systematic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Franklin Gold and Campbell Systematic

The main advantage of trading using opposite Franklin Gold and Campbell Systematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Campbell Systematic 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 Campbell Systematic will offset losses from the drop in Campbell Systematic's long position.

The idea behind Franklin Gold And and Campbell Systematic Macro pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.