Correlation Between Jpmorgan Emerging and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Emerging 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 Jpmorgan Emerging and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Emerging Markets and Franklin Mutual Global, you can compare the effects of market volatilities on Jpmorgan Emerging 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 Jpmorgan Emerging with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Emerging and Franklin Mutual.
Diversification Opportunities for Jpmorgan Emerging and Franklin Mutual
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JPMORGAN and Franklin is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Emerging Markets and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Jpmorgan Emerging 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 Jpmorgan Emerging Markets 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 Global has no effect on the direction of Jpmorgan Emerging i.e., Jpmorgan Emerging and Franklin Mutual go up and down completely randomly.
Pair Corralation between Jpmorgan Emerging and Franklin Mutual
Assuming the 90 days horizon Jpmorgan Emerging is expected to generate 1.66 times less return on investment than Franklin Mutual. In addition to that, Jpmorgan Emerging is 1.12 times more volatile than Franklin Mutual Global. It trades about 0.02 of its total potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.04 per unit of volatility. If you would invest 2,780 in Franklin Mutual Global on September 3, 2024 and sell it today you would earn a total of 437.00 from holding Franklin Mutual Global or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Emerging Markets vs. Franklin Mutual Global
Performance |
| Timeline |
| Jpmorgan Emerging Markets |
| Franklin Mutual Global |
Jpmorgan Emerging and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Emerging and Franklin Mutual
The main advantage of trading using opposite Jpmorgan Emerging and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Emerging 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.| Jpmorgan Emerging vs. Franklin Mutual Global | Jpmorgan Emerging vs. Templeton Growth Fund | Jpmorgan Emerging vs. Franklin Real Estate | Jpmorgan Emerging vs. HUMANA INC |
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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.
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