Correlation Between Franklin Corefolio and Franklin Founding
Can any of the company-specific risk be diversified away by investing in both Franklin Corefolio and Franklin Founding 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 Corefolio and Franklin Founding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Efolio Allocation and Franklin Founding Funds, you can compare the effects of market volatilities on Franklin Corefolio and Franklin Founding 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 Corefolio with a short position of Franklin Founding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Corefolio and Franklin Founding.
Diversification Opportunities for Franklin Corefolio and Franklin Founding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FRANKLIN and Franklin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Efolio Allocation and Franklin Founding Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Founding Funds and Franklin Corefolio 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 Efolio Allocation are associated (or correlated) with Franklin Founding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Founding Funds has no effect on the direction of Franklin Corefolio i.e., Franklin Corefolio and Franklin Founding go up and down completely randomly.
Pair Corralation between Franklin Corefolio and Franklin Founding
Assuming the 90 days horizon Franklin Efolio Allocation is expected to generate 1.61 times more return on investment than Franklin Founding. However, Franklin Corefolio is 1.61 times more volatile than Franklin Founding Funds. It trades about 0.08 of its potential returns per unit of risk. Franklin Founding Funds is currently generating about 0.1 per unit of risk. If you would invest 1,794 in Franklin Efolio Allocation on September 5, 2024 and sell it today you would earn a total of 693.00 from holding Franklin Efolio Allocation or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Franklin Efolio Allocation vs. Franklin Founding Funds
Performance |
| Timeline |
| Franklin Efolio Allo |
| Franklin Founding Funds |
Franklin Corefolio and Franklin Founding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Corefolio and Franklin Founding
The main advantage of trading using opposite Franklin Corefolio and Franklin Founding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Corefolio position performs unexpectedly, Franklin Founding 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 Founding will offset losses from the drop in Franklin Founding's long position.| Franklin Corefolio vs. Franklin Founding Funds | Franklin Corefolio vs. Franklin Growth Allocation | Franklin Corefolio vs. Franklin Growth Fund | Franklin Corefolio vs. Franklin Growth Opportunities |
| Franklin Founding vs. Amg River Road | Franklin Founding vs. American Century Etf | Franklin Founding vs. Mutual Of America | Franklin Founding vs. Mid Cap Value Profund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| 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 | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |