Correlation Between Clearbridge International and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Clearbridge International and Franklin Growth 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 Clearbridge International and Franklin Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearbridge International Growth and Franklin Growth Fund, you can compare the effects of market volatilities on Clearbridge International and Franklin Growth 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 Clearbridge International with a short position of Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearbridge International and Franklin Growth.
Diversification Opportunities for Clearbridge International and Franklin Growth
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clearbridge and Franklin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Clearbridge International Grow and Franklin Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth and Clearbridge International 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 Clearbridge International Growth are associated (or correlated) with Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth has no effect on the direction of Clearbridge International i.e., Clearbridge International and Franklin Growth go up and down completely randomly.
Pair Corralation between Clearbridge International and Franklin Growth
Assuming the 90 days horizon Clearbridge International is expected to generate 3.82 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Clearbridge International Growth is 1.1 times less risky than Franklin Growth. It trades about 0.06 of its potential returns per unit of risk. Franklin Growth Fund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 14,634 in Franklin Growth Fund on September 2, 2024 and sell it today you would earn a total of 526.00 from holding Franklin Growth Fund or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearbridge International Grow vs. Franklin Growth Fund
Performance |
| Timeline |
| Clearbridge International |
| Franklin Growth |
Clearbridge International and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearbridge International and Franklin Growth
The main advantage of trading using opposite Clearbridge International and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearbridge International position performs unexpectedly, Franklin Growth 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 Growth will offset losses from the drop in Franklin Growth's long position.| Clearbridge International vs. Ab Bond Inflation | Clearbridge International vs. Oklahoma Municipal Fund | Clearbridge International vs. T Rowe Price | Clearbridge International vs. Calamos Short Term Bond |
| Franklin Growth vs. Mfs International Diversification | Franklin Growth vs. John Hancock Bond | Franklin Growth vs. Prudential Total Return | Franklin Growth vs. New World 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |