Correlation Between Franklin Emerging and Cbre Clarion
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Cbre Clarion 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 Cbre Clarion 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 Cbre Clarion Global, you can compare the effects of market volatilities on Franklin Emerging and Cbre Clarion 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 Cbre Clarion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Cbre Clarion.
Diversification Opportunities for Franklin Emerging and Cbre Clarion
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Cbre is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Cbre Clarion Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cbre Clarion 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 Cbre Clarion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cbre Clarion Global has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Cbre Clarion go up and down completely randomly.
Pair Corralation between Franklin Emerging and Cbre Clarion
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.16 times more return on investment than Cbre Clarion. However, Franklin Emerging Market is 6.09 times less risky than Cbre Clarion. It trades about 0.23 of its potential returns per unit of risk. Cbre Clarion Global is currently generating about -0.08 per unit of risk. If you would invest 1,179 in Franklin Emerging Market on August 28, 2024 and sell it today you would earn a total of 36.00 from holding Franklin Emerging Market or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Cbre Clarion Global
Performance |
| Timeline |
| Franklin Emerging Market |
| Cbre Clarion Global |
Franklin Emerging and Cbre Clarion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Cbre Clarion
The main advantage of trading using opposite Franklin Emerging and Cbre Clarion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Cbre Clarion 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 Cbre Clarion will offset losses from the drop in Cbre Clarion's long position.| Franklin Emerging vs. Franklin Mutual Beacon | Franklin Emerging vs. Templeton Developing Markets | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global |
| Cbre Clarion vs. Aberdeen Global Dynamic | Cbre Clarion vs. Blackrock Resources Commodities | Cbre Clarion vs. Aberdeen Total Dynamic | Cbre Clarion vs. Blackrock Enhanced Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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