Correlation Between Franklin Emerging and Matthews India
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Matthews India 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 Matthews India 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 Matthews India Fund, you can compare the effects of market volatilities on Franklin Emerging and Matthews India 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 Matthews India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Matthews India.
Diversification Opportunities for Franklin Emerging and Matthews India
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Matthews is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Matthews India Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews India 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 Matthews India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews India has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Matthews India go up and down completely randomly.
Pair Corralation between Franklin Emerging and Matthews India
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.28 times more return on investment than Matthews India. However, Franklin Emerging Market is 3.58 times less risky than Matthews India. It trades about 0.18 of its potential returns per unit of risk. Matthews India Fund is currently generating about -0.12 per unit of risk. If you would invest 1,204 in Franklin Emerging Market on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Franklin Emerging Market or generate 0.91% 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. Matthews India Fund
Performance |
| Timeline |
| Franklin Emerging Market |
| Matthews India |
Franklin Emerging and Matthews India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Matthews India
The main advantage of trading using opposite Franklin Emerging and Matthews India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Matthews India 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 Matthews India will offset losses from the drop in Matthews India's long position.| Franklin Emerging vs. Chartwell Short Duration | Franklin Emerging vs. Ultra Short Term Fixed | Franklin Emerging vs. Maryland Tax Free Bond | Franklin Emerging vs. Bbh Intermediate Municipal |
| Matthews India vs. Alpskotak India Growth | Matthews India vs. Emerald Banking And | Matthews India vs. Oil Gas Ultrasector | Matthews India vs. Matthews Japan Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |