Correlation Between Doubleline Global and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Doubleline 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 Doubleline 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 Doubleline Global Bond and Franklin Mutual Global, you can compare the effects of market volatilities on Doubleline 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 Doubleline Global with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Global and Franklin Mutual.
Diversification Opportunities for Doubleline Global and Franklin Mutual
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Doubleline and Franklin is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Global Bond 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 Doubleline 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 Doubleline Global Bond 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 Doubleline Global i.e., Doubleline Global and Franklin Mutual go up and down completely randomly.
Pair Corralation between Doubleline Global and Franklin Mutual
Assuming the 90 days horizon Doubleline Global is expected to generate 9.94 times less return on investment than Franklin Mutual. But when comparing it to its historical volatility, Doubleline Global Bond is 1.93 times less risky than Franklin Mutual. It trades about 0.01 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 2,780 in Franklin Mutual Global on September 3, 2024 and sell it today you would earn a total of 437.00 from holding Franklin Mutual Global or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Global Bond vs. Franklin Mutual Global
Performance |
| Timeline |
| Doubleline Global Bond |
| Franklin Mutual Global |
Doubleline Global and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Global and Franklin Mutual
The main advantage of trading using opposite Doubleline Global and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline 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.| Doubleline Global vs. Franklin Gold Precious | Doubleline Global vs. Precious Metals And | Doubleline Global vs. James Balanced Golden | Doubleline Global vs. Short Precious Metals |
| Franklin Mutual vs. Invesco Global Health | Franklin Mutual vs. Baillie Gifford Health | Franklin Mutual vs. Deutsche Health And | Franklin Mutual vs. Blackrock Health Sciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |