Correlation Between Franklin Mutual and Brandes Global
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Brandes Global 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 Brandes Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Beacon and Brandes Global Equity, you can compare the effects of market volatilities on Franklin Mutual and Brandes Global 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 Brandes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Brandes Global.
Diversification Opportunities for Franklin Mutual and Brandes Global
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Brandes is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Beacon and Brandes Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Global Equity 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 Beacon are associated (or correlated) with Brandes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Global Equity has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Brandes Global go up and down completely randomly.
Pair Corralation between Franklin Mutual and Brandes Global
Assuming the 90 days horizon Franklin Mutual Beacon is expected to generate 0.92 times more return on investment than Brandes Global. However, Franklin Mutual Beacon is 1.08 times less risky than Brandes Global. It trades about 0.09 of its potential returns per unit of risk. Brandes Global Equity is currently generating about 0.06 per unit of risk. If you would invest 1,650 in Franklin Mutual Beacon on September 1, 2024 and sell it today you would earn a total of 129.00 from holding Franklin Mutual Beacon or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Beacon vs. Brandes Global Equity
Performance |
| Timeline |
| Franklin Mutual Beacon |
| Brandes Global Equity |
Franklin Mutual and Brandes Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Brandes Global
The main advantage of trading using opposite Franklin Mutual and Brandes Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Brandes Global 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 Brandes Global will offset losses from the drop in Brandes Global's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
| Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes Small Cap | Brandes Global vs. Brandes E Plus |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |