Correlation Between Ab Bond and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Franklin Mutual 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 Ab Bond and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Franklin Mutual Global, you can compare the effects of market volatilities on Ab Bond and Franklin Mutual 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 Ab Bond with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Franklin Mutual.
Diversification Opportunities for Ab Bond and Franklin Mutual
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ANBIX and Franklin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Ab Bond 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 Ab Bond Inflation are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Ab Bond i.e., Ab Bond and Franklin Mutual go up and down completely randomly.
Pair Corralation between Ab Bond and Franklin Mutual
Assuming the 90 days horizon Ab Bond is expected to generate 2.51 times less return on investment than Franklin Mutual. But when comparing it to its historical volatility, Ab Bond Inflation is 3.73 times less risky than Franklin Mutual. It trades about 0.05 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,280 in Franklin Mutual Global on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Franklin Mutual Global or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Franklin Mutual Global
Performance |
| Timeline |
| Ab Bond Inflation |
| Franklin Mutual Global |
Ab Bond and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Franklin Mutual
The main advantage of trading using opposite Ab Bond and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Global E | Ab Bond vs. Ab Minnesota Portfolio |
| Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Templeton Foreign 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |