Correlation Between Franklin Natural and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Franklin Natural and Massmutual Premier 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 Natural and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Natural Resources and Massmutual Premier Short Duration, you can compare the effects of market volatilities on Franklin Natural and Massmutual Premier 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 Natural with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Natural and Massmutual Premier.
Diversification Opportunities for Franklin Natural and Massmutual Premier
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Massmutual is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Natural Resources and Massmutual Premier Short Durat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Franklin Natural 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 Natural Resources are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier has no effect on the direction of Franklin Natural i.e., Franklin Natural and Massmutual Premier go up and down completely randomly.
Pair Corralation between Franklin Natural and Massmutual Premier
Assuming the 90 days horizon Franklin Natural Resources is expected to under-perform the Massmutual Premier. In addition to that, Franklin Natural is 21.0 times more volatile than Massmutual Premier Short Duration. It trades about -0.1 of its total potential returns per unit of risk. Massmutual Premier Short Duration is currently generating about -0.09 per unit of volatility. If you would invest 930.00 in Massmutual Premier Short Duration on January 10, 2025 and sell it today you would lose (3.00) from holding Massmutual Premier Short Duration or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Natural Resources vs. Massmutual Premier Short Durat
Performance |
| Timeline |
| Franklin Natural Res |
| Massmutual Premier |
Franklin Natural and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Natural and Massmutual Premier
The main advantage of trading using opposite Franklin Natural and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Natural position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier's long position.| Franklin Natural vs. Fidelity Government Income | Franklin Natural vs. Short Term Government Fund | Franklin Natural vs. Us Government Securities | Franklin Natural vs. Us Government Securities |
| Massmutual Premier vs. Texton Property | Massmutual Premier vs. Amg Managers Centersquare | Massmutual Premier vs. Aew Real Estate | Massmutual Premier vs. Franklin 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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