Correlation Between Franklin and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin and Franklin Emerging 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 and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Government Money and Franklin Emerging Market, you can compare the effects of market volatilities on Franklin and Franklin Emerging 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 with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin and Franklin Emerging.
Diversification Opportunities for Franklin and Franklin Emerging
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Franklin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Government Money and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Franklin 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 Government Money are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Franklin i.e., Franklin and Franklin Emerging go up and down completely randomly.
Pair Corralation between Franklin and Franklin Emerging
If you would invest 1,160 in Franklin Emerging Market on November 4, 2024 and sell it today you would earn a total of 17.00 from holding Franklin Emerging Market or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Government Money vs. Franklin Emerging Market
Performance |
| Timeline |
| Franklin Government Money |
| Franklin Emerging Market |
Franklin and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin and Franklin Emerging
The main advantage of trading using opposite Franklin and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin position performs unexpectedly, Franklin Emerging 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 Emerging will offset losses from the drop in Franklin Emerging's long position.| Franklin vs. Retirement Living Through | Franklin vs. Sierra E Retirement | Franklin vs. College Retirement Equities | Franklin vs. Franklin Lifesmart Retirement |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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