Correlation Between Emerald Growth and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Emerald Growth and Franklin Mutual 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 Emerald Growth and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Growth Fund and Franklin Mutual Financial, you can compare the effects of market volatilities on Emerald Growth and Franklin Mutual 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 Emerald Growth with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Growth and Franklin Mutual.
Diversification Opportunities for Emerald Growth and Franklin Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerald and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Growth Fund and Franklin Mutual Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Financial and Emerald Growth 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 Emerald Growth Fund are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Financial has no effect on the direction of Emerald Growth i.e., Emerald Growth and Franklin Mutual go up and down completely randomly.
Pair Corralation between Emerald Growth and Franklin Mutual
If you would invest (100.00) in Franklin Mutual Financial on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Franklin Mutual Financial or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Emerald Growth Fund vs. Franklin Mutual Financial
Performance |
| Timeline |
| Emerald Growth |
| Franklin Mutual Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Emerald Growth and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Growth and Franklin Mutual
The main advantage of trading using opposite Emerald Growth and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Growth position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Emerald Growth vs. The Chesapeake Growth | Emerald Growth vs. Emerald Banking And | Emerald Growth vs. Hotchkis Wiley Large | Emerald Growth vs. Emerald Growth Fund |
| Franklin Mutual vs. Franklin Mutual European | Franklin Mutual vs. Franklin Natural Resources | Franklin Mutual vs. Franklin Real Estate | Franklin Mutual vs. Franklin Utilities 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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