Correlation Between Artisan Global and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Artisan Global 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 Artisan Global and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Value and Franklin Mutual Global, you can compare the effects of market volatilities on Artisan Global 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 Artisan Global with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Franklin Mutual.
Diversification Opportunities for Artisan Global and Franklin Mutual
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Artisan and Franklin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Value 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 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 Value 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 Artisan Global i.e., Artisan Global and Franklin Mutual go up and down completely randomly.
Pair Corralation between Artisan Global and Franklin Mutual
Assuming the 90 days horizon Artisan Global is expected to generate 2.11 times less return on investment than Franklin Mutual. In addition to that, Artisan Global is 1.02 times more volatile than Franklin Mutual Global. It trades about 0.03 of its total potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.07 per unit of volatility. If you would invest 3,176 in Franklin Mutual Global on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Franklin Mutual Global or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Value vs. Franklin Mutual Global
Performance |
| Timeline |
| Artisan Global Value |
| Franklin Mutual Global |
Artisan Global and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Franklin Mutual
The main advantage of trading using opposite Artisan Global and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global 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.| Artisan Global vs. Artisan Global Opportunities | Artisan Global vs. Artisan International Value | Artisan Global vs. Artisan Global Equity | Artisan Global vs. Oakmark Global Select |
| Franklin Mutual vs. Vanguard Financials Index | Franklin Mutual vs. Royce Global Financial | Franklin Mutual vs. Goldman Sachs Financial | Franklin Mutual vs. Gabelli Global Financial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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