Correlation Between Franklin Emerging and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Harding Loevner 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 Emerging and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Emerging Market and Harding Loevner Global, you can compare the effects of market volatilities on Franklin Emerging and Harding Loevner 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 Emerging with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Harding Loevner.
Diversification Opportunities for Franklin Emerging and Harding Loevner
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FRANKLIN and Harding is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global and Franklin 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 Franklin Emerging Market are associated (or correlated) with Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Global has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Harding Loevner go up and down completely randomly.
Pair Corralation between Franklin Emerging and Harding Loevner
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.14 times more return on investment than Harding Loevner. However, Franklin Emerging Market is 7.32 times less risky than Harding Loevner. It trades about 0.21 of its potential returns per unit of risk. Harding Loevner Global is currently generating about -0.02 per unit of risk. If you would invest 1,042 in Franklin Emerging Market on October 29, 2024 and sell it today you would earn a total of 132.00 from holding Franklin Emerging Market or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Harding Loevner Global
Performance |
| Timeline |
| Franklin Emerging Market |
| Harding Loevner Global |
Franklin Emerging and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Harding Loevner
The main advantage of trading using opposite Franklin Emerging and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Franklin Emerging vs. Jhancock Real Estate | Franklin Emerging vs. Vanguard Reit Index | Franklin Emerging vs. Simt Real Estate | Franklin Emerging vs. Vy Clarion Real |
| Harding Loevner vs. Allianzgi Global Natural | Harding Loevner vs. Transamerica Mlp Energy | Harding Loevner vs. Pgim Jennison Natural | Harding Loevner vs. Fidelity Advisor Energy |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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