Correlation Between Franklin Mutual and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Franklin Strategic 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 Mutual and Franklin Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Franklin Strategic Mortgage, you can compare the effects of market volatilities on Franklin Mutual and Franklin Strategic 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 Mutual with a short position of Franklin Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Franklin Strategic.
Diversification Opportunities for Franklin Mutual and Franklin Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Franklin Strategic Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic and Franklin Mutual 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 Mutual Global are associated (or correlated) with Franklin Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Franklin Strategic go up and down completely randomly.
Pair Corralation between Franklin Mutual and Franklin Strategic
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 1.31 times more return on investment than Franklin Strategic. However, Franklin Mutual is 1.31 times more volatile than Franklin Strategic Mortgage. It trades about -0.2 of its potential returns per unit of risk. Franklin Strategic Mortgage is currently generating about -0.34 per unit of risk. If you would invest 3,144 in Franklin Mutual Global on January 27, 2024 and sell it today you would lose (86.00) from holding Franklin Mutual Global or give up 2.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Mutual Global vs. Franklin Strategic Mortgage
Performance |
Timeline |
Franklin Mutual Global |
Franklin Strategic |
Franklin Mutual and Franklin Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Mutual and Franklin Strategic
The main advantage of trading using opposite Franklin Mutual and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. T Rowe Price | Franklin Mutual vs. Franklin Mutual Global |
Franklin Strategic vs. Metropolitan West Total | Franklin Strategic vs. Pimco Total Return | Franklin Strategic vs. Strategic Advisers Fidelity | Franklin Strategic vs. Dodge Income Fund |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |