# Franklin Mutual Fund Volatility

FEIQX | - USA Fund | ## USD 30.40 0.00 0.19% |

We consider Franklin Equity very steady. Franklin Equity Income secures Sharpe Ratio (or Efficiency) of 0.12, which denotes the fund had 0.12% of return per unit of standard deviation over the last 3 months. Our philosophy in predicting the volatility of a fund is to use all available market data together with fund-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Franklin Equity Income, which you can use to evaluate the future volatility of the entity. Please confirm Franklin Equity Income Downside Deviation of 0.5856, semi deviation of 0.4657, and Mean Deviation of 0.4479 to check if the risk estimate we provide is consistent with the expected return of 0.0669%.

Franklin Equity Mutual Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Franklin daily returns, and it is calculated using variance and standard deviation. We also use Franklin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Franklin Equity volatility.

### 90 Days Market Risk

### Chance of Distress

### 90 Days Economic Sensitivity

## Franklin Equity Market Sensitivity And Downside Risk

Franklin Equity's beta coefficient measures the volatility of Franklin mutual fund compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Franklin mutual fund's returns against your selected market. In other words, Franklin Equity's beta of 0.68 provides an investor with an approximation of how much risk Franklin Equity mutual fund can potentially add to one of your existing portfolios.

Let's try to break down what Franklin's beta means in this case. As returns on the market increase, Franklin Equity returns are expected to increase less than the market. However, during the bear market, the loss on holding Franklin Equity will be expected to be smaller as well. 3 Months Beta |Analyze Franklin Equity Income Demand TrendCheck current 90 days Franklin Equity correlation with market (DOW)## Franklin Beta |

## Standard Deviation | 0.57 |

It is essential to understand the difference between upside risk (as represented by Franklin Equity's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Franklin Equity stock's daily returns or price. Since the actual investment returns on holding a position in Franklin Equity stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Franklin Equity.

## Franklin Equity Income Mutual Fund Volatility Analysis

Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. Franklin Equity Income Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

## Franklin Equity Projected Return Density Against Market

Assuming the 90 days horizon Franklin Equity has a beta of 0.6844 . This usually indicates as returns on the market go up, Franklin Equity average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Franklin Equity Income will be expected to be much smaller as well.

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Franklin Equity or Franklin Templeton Investments sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Franklin Equity stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Franklin stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.

The company has an alpha of 0.0454, implying that it can generate a 0.0454 percent excess return over DOW after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## Franklin Equity Mutual Fund Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Franklin Equity or Franklin Templeton Investments sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Franklin Equity stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Franklin stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.

Assuming the 90 days horizon the coefficient of variation of Franklin Equity is 846.37. The daily returns are distributed with a variance of 0.32 and standard deviation of 0.57. The mean deviation of Franklin Equity Income is currently at 0.45. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69α | Alpha over DOW | 0.0454 | |

β | Beta against DOW | 0.68 | |

σ | Overall volatility | 0.57 | |

Ir | Information ratio | 0.07 |

## Franklin Equity Mutual Fund Return Volatility

Franklin Equity historical daily return volatility represents how much Franklin Equity stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund shows 0.566% volatility of returns over 90 . By contrast, DOW inherits 0.669% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About Franklin Equity Volatility

Volatility is a rate at which the price of Franklin Equity or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Franklin Equity may increase or decrease. In other words, similar to Franklin's beta indicator, it measures the risk of Franklin Equity and helps estimate the fluctuations that may happen in a short period of time. So if prices of Franklin Equity fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.

Please read more on our technical analysis page.The investment seeks to maximize total return by emphasizing high current income and long-term capital appreciation, consistent with reasonable risk. Franklin Equity is traded on NASDAQ Exchange in the United States.## Franklin Equity Investment Opportunity

DOW has a standard deviation of returns of 0.67 and is 1.18 times more volatile than Franklin Equity Income.

**4**of all equities and portfolios are less risky than Franklin Equity. Compared to the overall equity markets, volatility of historical daily returns of Franklin Equity Income is lower than**4 ()**of all global equities and portfolios over the last 90 days. Use Franklin Equity Income to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Franklin Equity to be traded at $31.45 in 90 days. . Let's try to break down what Franklin's beta means in this case. As returns on the market increase, Franklin Equity returns are expected to increase less than the market. However, during the bear market, the loss on holding Franklin Equity will be expected to be smaller as well.### Very poor diversification

The correlation between Franklin Equity Income and DJI is

**Very poor diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Equity Income and DJI in the same portfolio assuming nothing else is changed.## Franklin Equity Additional Risk Indicators

The analysis of Franklin Equity's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Franklin Equity's investment and either accepting that risk or mitigating it. Along with some common measures of Franklin Equity stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.

Risk Adjusted Performance | 0.0794 | |||

Market Risk Adjusted Performance | 0.0931 | |||

Mean Deviation | 0.4479 | |||

Semi Deviation | 0.4657 | |||

Downside Deviation | 0.5856 | |||

Coefficient Of Variation | 846.37 | |||

Standard Deviation | 0.566 |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## Franklin Equity Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.

Aave vs. Franklin Equity | ||

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Franklin Equity as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Franklin Equity's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Franklin Equity's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Franklin Equity Income.

Please check Investing Opportunities. Note that the Franklin Equity Income information on this page should be used as a complementary analysis to other Franklin Equity's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

## Complementary Tools for Franklin Mutual Fund analysis

When running Franklin Equity Income price analysis, check to measure Franklin Equity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Franklin Equity is operating at the current time. Most of Franklin Equity's value examination focuses on studying past and present price action to predict the probability of Franklin Equity's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Franklin Equity's price. Additionally, you may evaluate how the addition of Franklin Equity to your portfolios can decrease your overall portfolio volatility.

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