Correlation Between Ep Emerging and Franklin International
Can any of the company-specific risk be diversified away by investing in both Ep Emerging and Franklin International 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 Ep Emerging and Franklin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ep Emerging Markets and Franklin International Core, you can compare the effects of market volatilities on Ep Emerging and Franklin International 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 Ep Emerging with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ep Emerging and Franklin International.
Diversification Opportunities for Ep Emerging and Franklin International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EPEIX and Franklin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ep Emerging Markets and Franklin International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International and Ep Emerging 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 Ep Emerging Markets are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Ep Emerging i.e., Ep Emerging and Franklin International go up and down completely randomly.
Pair Corralation between Ep Emerging and Franklin International
Assuming the 90 days horizon Ep Emerging Markets is expected to under-perform the Franklin International. In addition to that, Ep Emerging is 1.2 times more volatile than Franklin International Core. It trades about -0.15 of its total potential returns per unit of risk. Franklin International Core is currently generating about 0.01 per unit of volatility. If you would invest 1,214 in Franklin International Core on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Franklin International Core or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ep Emerging Markets vs. Franklin International Core
Performance |
| Timeline |
| Ep Emerging Markets |
| Franklin International |
Ep Emerging and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ep Emerging and Franklin International
The main advantage of trading using opposite Ep Emerging and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ep Emerging position performs unexpectedly, Franklin International 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 International will offset losses from the drop in Franklin International's long position.| Ep Emerging vs. Sa Real Estate | Ep Emerging vs. Pender Real Estate | Ep Emerging vs. Virtus Real Estate | Ep Emerging vs. Forum Real Estate |
| Franklin International vs. Mutual Of America | Franklin International vs. Siit Small Mid | Franklin International vs. Sp Smallcap 600 | Franklin International vs. Aqr Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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