Correlation Between Franklin Growth and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Eagle Mid 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 Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Eagle Mid Cap, you can compare the effects of market volatilities on Franklin Growth and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Eagle Mid.
Diversification Opportunities for Franklin Growth and Eagle Mid
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Eagle is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Opportunities are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Franklin Growth i.e., Franklin Growth and Eagle Mid go up and down completely randomly.
Pair Corralation between Franklin Growth and Eagle Mid
If you would invest 6,372 in Franklin Growth Opportunities on September 13, 2024 and sell it today you would earn a total of 80.00 from holding Franklin Growth Opportunities or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Eagle Mid Cap
Performance |
| Timeline |
| Franklin Growth Oppo |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Growth and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Eagle Mid
The main advantage of trading using opposite Franklin Growth and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Franklin Growth vs. Gmo High Yield | Franklin Growth vs. Pax High Yield | Franklin Growth vs. Fidelity Capital Income | Franklin Growth vs. Jpmorgan High Yield |
| Eagle Mid vs. Franklin Growth Opportunities | Eagle Mid vs. Praxis Growth Index | Eagle Mid vs. L Abbett Growth | Eagle Mid vs. Pace Smallmedium Growth |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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