Correlation Between Franklin Real and Franklin International
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Franklin International 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 Real and Franklin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Franklin International Small, you can compare the effects of market volatilities on Franklin Real and Franklin International 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 Real with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Franklin International.
Diversification Opportunities for Franklin Real and Franklin International
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Franklin is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Franklin International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International and Franklin Real 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 Real Estate are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Franklin Real i.e., Franklin Real and Franklin International go up and down completely randomly.
Pair Corralation between Franklin Real and Franklin International
If you would invest 1,910 in Franklin Real Estate on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Franklin Real Estate or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Franklin Real Estate vs. Franklin International Small
Performance |
| Timeline |
| Franklin Real Estate |
| Franklin International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Real and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Franklin International
The main advantage of trading using opposite Franklin Real and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Franklin International 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 Franklin International will offset losses from the drop in Franklin International's long position.| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
| Franklin International vs. Jhancock Real Estate | Franklin International vs. Real Estate Ultrasector | Franklin International vs. Columbia Real Estate | Franklin International vs. Dunham Real Estate |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |