Correlation Between Franklin Growth and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both Franklin Growth 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 Growth 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 Growth Opportunities and Clearbridge Value Trust, you can compare the effects of market volatilities on Franklin Growth 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 Growth with a short position of Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Clearbridge Value.
Diversification Opportunities for Franklin Growth and Clearbridge Value
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Clearbridge is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities 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 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 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 Growth i.e., Franklin Growth and Clearbridge Value go up and down completely randomly.
Pair Corralation between Franklin Growth and Clearbridge Value
Assuming the 90 days horizon Franklin Growth Opportunities is expected to generate 1.24 times more return on investment than Clearbridge Value. However, Franklin Growth is 1.24 times more volatile than Clearbridge Value Trust. It trades about 0.1 of its potential returns per unit of risk. Clearbridge Value Trust is currently generating about 0.1 per unit of risk. If you would invest 5,480 in Franklin Growth Opportunities on August 29, 2024 and sell it today you would earn a total of 822.00 from holding Franklin Growth Opportunities or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Clearbridge Value Trust
Performance |
| Timeline |
| Franklin Growth Oppo |
| Clearbridge Value Trust |
Franklin Growth and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Clearbridge Value
The main advantage of trading using opposite Franklin Growth and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth 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 Growth vs. Abr 7525 Volatility | Franklin Growth vs. Scharf Global Opportunity | Franklin Growth vs. Arrow Managed Futures | Franklin Growth vs. Aam Select Income |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |