Correlation Between Franklin Gold and Clearbridge Mid
Can any of the company-specific risk be diversified away by investing in both Franklin Gold and Clearbridge 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 Gold and Clearbridge Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Gold Precious and Clearbridge Mid Cap, you can compare the effects of market volatilities on Franklin Gold and Clearbridge 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 Gold with a short position of Clearbridge Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Gold and Clearbridge Mid.
Diversification Opportunities for Franklin Gold and Clearbridge Mid
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Clearbridge is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Gold Precious and Clearbridge Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Mid Cap and Franklin Gold 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 Gold Precious are associated (or correlated) with Clearbridge Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Mid Cap has no effect on the direction of Franklin Gold i.e., Franklin Gold and Clearbridge Mid go up and down completely randomly.
Pair Corralation between Franklin Gold and Clearbridge Mid
Assuming the 90 days horizon Franklin Gold Precious is expected to generate 1.73 times more return on investment than Clearbridge Mid. However, Franklin Gold is 1.73 times more volatile than Clearbridge Mid Cap. It trades about 0.09 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about 0.11 per unit of risk. If you would invest 1,610 in Franklin Gold Precious on September 13, 2024 and sell it today you would earn a total of 308.00 from holding Franklin Gold Precious or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Gold Precious vs. Clearbridge Mid Cap
Performance |
| Timeline |
| Franklin Gold Precious |
| Clearbridge Mid Cap |
Franklin Gold and Clearbridge Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Gold and Clearbridge Mid
The main advantage of trading using opposite Franklin Gold and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Gold position performs unexpectedly, Clearbridge 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 Clearbridge Mid will offset losses from the drop in Clearbridge Mid's long position.| Franklin Gold vs. Franklin Mutual Beacon | Franklin Gold vs. Templeton Developing Markets | Franklin Gold vs. Franklin Mutual Global | Franklin Gold vs. Franklin Mutual Global |
| Clearbridge Mid vs. Clearbridge Aggressive Growth | Clearbridge Mid vs. Clearbridge Small Cap | Clearbridge Mid vs. Qs International Equity | Clearbridge Mid vs. Clearbridge Appreciation Fund |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |