Correlation Between Franklin Small and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Franklin Small and Jacob Funds 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 Small and Jacob Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Small Cap and Jacob Funds , you can compare the effects of market volatilities on Franklin Small and Jacob Funds 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 Small with a short position of Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small and Jacob Funds.
Diversification Opportunities for Franklin Small and Jacob Funds
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Jacob is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Cap and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds and Franklin Small 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 Small Cap are associated (or correlated) with Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Franklin Small i.e., Franklin Small and Jacob Funds go up and down completely randomly.
Pair Corralation between Franklin Small and Jacob Funds
If you would invest 5,792 in Franklin Small Cap on September 14, 2024 and sell it today you would earn a total of 1,019 from holding Franklin Small Cap or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Franklin Small Cap vs. Jacob Funds
Performance |
| Timeline |
| Franklin Small Cap |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Small and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Small and Jacob Funds
The main advantage of trading using opposite Franklin Small and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Franklin Small vs. Small Pany Growth | Franklin Small vs. Foundry Partners Fundamental | Franklin Small vs. Ab Small Cap | Franklin Small vs. Guidemark Smallmid Cap |
| Jacob Funds vs. Balanced Fund Investor | Jacob Funds vs. Iaadx | Jacob Funds vs. Red Oak Technology | Jacob Funds vs. Aam Select Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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