Projected Return Density against MarketAssuming 30 trading days horizon, Franklin has beta of 0.54 suggesting as returns on market go up, Franklin avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding Franklin Income A will be expected to be much smaller as well. Moreover, Franklin Income A has alpha of 0.54 implying that it can potentially generate 0.54% excess return over S&P 500 after adjusting for the inherited market risk (beta). Assuming 30 trading days horizon, the coefficient of variation of Franklin is 712.22. The daily returns are destributed with a variance of 0.18 and standard deviation of 0.42. The mean deviation of Franklin Income A is currently at 0.34. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.57
Actual Return VolatilityFranklin Income A shows 0.42% volatility of returns over 30 trading days. S&P 500 shows 0.57% volatility of returns over 30 trading days.
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S&P 500 has a standard deviation of returns of 0.57 and is 1.36 times more volatile than Franklin Income A. 5% of all equities and portfolios are less risky than Franklin. Compared with the overall equity markets, volatility of historical daily returns of Franklin Income A is lower than 5 (%) of all global equities and portfolios over the last 30 days. Use Franklin Income A to protect against small markets fluctuations. The fund experiences stable pattern. Watch out for signals. As returns on market increase, Franklin returns are expected to increase less than the market. However during bear market, the loss on holding Franklin will be expected to be smaller as well.
Franklin correlation with market
Franklin Current Risk Indicators
Suggested Divercification Pairs