Correlation Between Franklin Growth and Marsico Focus
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Marsico Focus 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 Marsico Focus 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 Marsico Focus, you can compare the effects of market volatilities on Franklin Growth and Marsico Focus 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 Marsico Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Marsico Focus.
Diversification Opportunities for Franklin Growth and Marsico Focus
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Marsico is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Marsico Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Focus 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 Marsico Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Focus has no effect on the direction of Franklin Growth i.e., Franklin Growth and Marsico Focus go up and down completely randomly.
Pair Corralation between Franklin Growth and Marsico Focus
Assuming the 90 days horizon Franklin Growth is expected to generate 1.68 times less return on investment than Marsico Focus. In addition to that, Franklin Growth is 1.1 times more volatile than Marsico Focus. It trades about 0.07 of its total potential returns per unit of risk. Marsico Focus is currently generating about 0.13 per unit of volatility. If you would invest 2,210 in Marsico Focus on September 14, 2024 and sell it today you would earn a total of 1,046 from holding Marsico Focus or generate 47.33% 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. Marsico Focus
Performance |
| Timeline |
| Franklin Growth Oppo |
| Marsico Focus |
Franklin Growth and Marsico Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Marsico Focus
The main advantage of trading using opposite Franklin Growth and Marsico Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Marsico Focus 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 Marsico Focus will offset losses from the drop in Marsico Focus' long position.| Franklin Growth vs. Western Asset Municipal | Franklin Growth vs. Artisan High Income | Franklin Growth vs. Dreyfusstandish Global Fixed | Franklin Growth vs. Dws Government Money |
| Marsico Focus vs. T Rowe Price | Marsico Focus vs. Qs Defensive Growth | Marsico Focus vs. Qs Moderate Growth | Marsico Focus vs. Franklin Growth Opportunities |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |