Correlation Between Franklin Growth and Mfs International
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Mfs 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 Franklin Growth and Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Fund and Mfs International Diversification, you can compare the effects of market volatilities on Franklin Growth and Mfs 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 Franklin Growth with a short position of Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Mfs International.
Diversification Opportunities for Franklin Growth and Mfs International
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Mfs is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Fund and Mfs International Diversificat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International and Franklin Growth 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 Growth Fund are associated (or correlated) with Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International has no effect on the direction of Franklin Growth i.e., Franklin Growth and Mfs International go up and down completely randomly.
Pair Corralation between Franklin Growth and Mfs International
Assuming the 90 days horizon Franklin Growth Fund is expected to generate 1.53 times more return on investment than Mfs International. However, Franklin Growth is 1.53 times more volatile than Mfs International Diversification. It trades about 0.05 of its potential returns per unit of risk. Mfs International Diversification is currently generating about 0.05 per unit of risk. If you would invest 11,800 in Franklin Growth Fund on September 4, 2024 and sell it today you would earn a total of 3,234 from holding Franklin Growth Fund or generate 27.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Fund vs. Mfs International Diversificat
Performance |
| Timeline |
| Franklin Growth |
| Mfs International |
Franklin Growth and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Mfs International
The main advantage of trading using opposite Franklin Growth and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Mfs 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 Mfs International will offset losses from the drop in Mfs International's long position.| Franklin Growth vs. Franklin Mutual Beacon | Franklin Growth vs. Templeton Developing Markets | Franklin Growth vs. Franklin Mutual Global | Franklin Growth vs. Franklin Mutual Global |
| Mfs International vs. Franklin Dynatech Fund | Mfs International vs. John Hancock Bond | Mfs International vs. Prudential Total Return | Mfs International vs. Mfs Growth 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |