Correlation Between Artisan Global and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Franklin Growth 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 Artisan Global and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Unconstrained and Franklin Growth Opportunities, you can compare the effects of market volatilities on Artisan Global and Franklin Growth 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 Artisan Global with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Franklin Growth.
Diversification Opportunities for Artisan Global and Franklin Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Franklin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Unconstrained and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo and Artisan Global 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 Artisan Global Unconstrained are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Oppo has no effect on the direction of Artisan Global i.e., Artisan Global and Franklin Growth go up and down completely randomly.
Pair Corralation between Artisan Global and Franklin Growth
Assuming the 90 days horizon Artisan Global Unconstrained is expected to under-perform the Franklin Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Artisan Global Unconstrained is 6.76 times less risky than Franklin Growth. The mutual fund trades about -0.16 of its potential returns per unit of risk. The Franklin Growth Opportunities is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,959 in Franklin Growth Opportunities on September 1, 2024 and sell it today you would earn a total of 385.00 from holding Franklin Growth Opportunities or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Artisan Global Unconstrained vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Artisan Global Uncon |
| Franklin Growth Oppo |
Artisan Global and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Franklin Growth
The main advantage of trading using opposite Artisan Global and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Artisan Global vs. Artisan Value Income | Artisan Global vs. Artisan Developing World | Artisan Global vs. Artisan Thematic Fund | Artisan Global vs. Artisan Small Cap |
| Franklin Growth vs. Kinetics Global Fund | Franklin Growth vs. Artisan Global Unconstrained | Franklin Growth vs. Pimco Global Multi Asset | Franklin Growth vs. Commonwealth Global 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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