Correlation Between Mid-cap Value and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Mid-cap Value 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 Mid-cap Value and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Value Profund and Franklin Mutual Global, you can compare the effects of market volatilities on Mid-cap Value 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 Mid-cap Value with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap Value and Franklin Mutual.
Diversification Opportunities for Mid-cap Value and Franklin Mutual
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mid-cap and Franklin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Value Profund 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 Mid-cap Value 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 Mid Cap Value Profund 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 Mid-cap Value i.e., Mid-cap Value and Franklin Mutual go up and down completely randomly.
Pair Corralation between Mid-cap Value and Franklin Mutual
Assuming the 90 days horizon Mid Cap Value Profund is expected to generate 1.39 times more return on investment than Franklin Mutual. However, Mid-cap Value is 1.39 times more volatile than Franklin Mutual Global. It trades about 0.11 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.07 per unit of risk. If you would invest 7,093 in Mid Cap Value Profund on September 1, 2024 and sell it today you would earn a total of 2,446 from holding Mid Cap Value Profund or generate 34.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap Value Profund vs. Franklin Mutual Global
Performance |
| Timeline |
| Mid Cap Value |
| Franklin Mutual Global |
Mid-cap Value and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap Value and Franklin Mutual
The main advantage of trading using opposite Mid-cap Value and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap Value 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.| Mid-cap Value vs. Growth Opportunities Fund | Mid-cap Value vs. Nationwide Growth Fund | Mid-cap Value vs. Eip Growth And | Mid-cap Value vs. Legg Mason Partners |
| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |