Correlation Between Franklin Strategic and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both Franklin Strategic and Clearbridge Value 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 Strategic and Clearbridge Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Strategic Series and Clearbridge Value Trust, you can compare the effects of market volatilities on Franklin Strategic and Clearbridge Value 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 Strategic with a short position of Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Strategic and Clearbridge Value.
Diversification Opportunities for Franklin Strategic and Clearbridge Value
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Clearbridge is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Strategic Series and Clearbridge Value Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Value Trust and Franklin Strategic 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 Strategic Series are associated (or correlated) with Clearbridge Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Value Trust has no effect on the direction of Franklin Strategic i.e., Franklin Strategic and Clearbridge Value go up and down completely randomly.
Pair Corralation between Franklin Strategic and Clearbridge Value
Assuming the 90 days horizon Franklin Strategic is expected to generate 1.63 times less return on investment than Clearbridge Value. But when comparing it to its historical volatility, Franklin Strategic Series is 1.77 times less risky than Clearbridge Value. It trades about 0.11 of its potential returns per unit of risk. Clearbridge Value Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,827 in Clearbridge Value Trust on August 29, 2024 and sell it today you would earn a total of 1,505 from holding Clearbridge Value Trust or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Strategic Series vs. Clearbridge Value Trust
Performance |
| Timeline |
| Franklin Strategic Series |
| Clearbridge Value Trust |
Franklin Strategic and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Strategic and Clearbridge Value
The main advantage of trading using opposite Franklin Strategic and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Strategic position performs unexpectedly, Clearbridge Value 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 Clearbridge Value will offset losses from the drop in Clearbridge Value's long position.| Franklin Strategic vs. Janus Global Technology | Franklin Strategic vs. Towpath Technology | Franklin Strategic vs. Global Technology Portfolio | Franklin Strategic vs. Invesco Technology Fund |
| Clearbridge Value vs. Blackrock Government Bond | Clearbridge Value vs. Aig Government Money | Clearbridge Value vs. Dunham Porategovernment Bond | Clearbridge Value vs. Us Government Securities |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| 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 | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |