Correlation Between Franklin Federal and Cullen Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin Federal and Cullen Emerging 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 Federal and Cullen Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Limited Term and Cullen Emerging Markets, you can compare the effects of market volatilities on Franklin Federal and Cullen Emerging 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 Federal with a short position of Cullen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Cullen Emerging.
Diversification Opportunities for Franklin Federal and Cullen Emerging
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Cullen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Limited Term and Cullen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Emerging Markets and Franklin Federal 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 Federal Limited Term are associated (or correlated) with Cullen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Emerging Markets has no effect on the direction of Franklin Federal i.e., Franklin Federal and Cullen Emerging go up and down completely randomly.
Pair Corralation between Franklin Federal and Cullen Emerging
Assuming the 90 days horizon Franklin Federal is expected to generate 3.19 times less return on investment than Cullen Emerging. But when comparing it to its historical volatility, Franklin Federal Limited Term is 7.29 times less risky than Cullen Emerging. It trades about 0.17 of its potential returns per unit of risk. Cullen Emerging Markets is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Cullen Emerging Markets on September 2, 2024 and sell it today you would earn a total of 225.00 from holding Cullen Emerging Markets or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Federal Limited Term vs. Cullen Emerging Markets
Performance |
| Timeline |
| Franklin Federal Lim |
| Cullen Emerging Markets |
Franklin Federal and Cullen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Cullen Emerging
The main advantage of trading using opposite Franklin Federal and Cullen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal position performs unexpectedly, Cullen Emerging 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 Cullen Emerging will offset losses from the drop in Cullen Emerging's long position.| Franklin Federal vs. Eip Growth And | Franklin Federal vs. Kinetics Small Cap | Franklin Federal vs. Chase Growth Fund | Franklin Federal vs. T Rowe Price |
| Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Small Cap | Cullen Emerging vs. Cullen Value 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |