Correlation Between Franklin Mutual and Appleseed Fund
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Appleseed Fund 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 Mutual and Appleseed Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Shares and Appleseed Fund Appleseed, you can compare the effects of market volatilities on Franklin Mutual and Appleseed Fund 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 Mutual with a short position of Appleseed Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Appleseed Fund.
Diversification Opportunities for Franklin Mutual and Appleseed Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FRANKLIN and Appleseed is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Shares and Appleseed Fund Appleseed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appleseed Fund Appleseed and Franklin Mutual 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 Mutual Shares are associated (or correlated) with Appleseed Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appleseed Fund Appleseed has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Appleseed Fund go up and down completely randomly.
Pair Corralation between Franklin Mutual and Appleseed Fund
Assuming the 90 days horizon Franklin Mutual Shares is expected to generate 1.07 times more return on investment than Appleseed Fund. However, Franklin Mutual is 1.07 times more volatile than Appleseed Fund Appleseed. It trades about 0.35 of its potential returns per unit of risk. Appleseed Fund Appleseed is currently generating about 0.27 per unit of risk. If you would invest 2,756 in Franklin Mutual Shares on September 1, 2024 and sell it today you would earn a total of 179.00 from holding Franklin Mutual Shares or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Shares vs. Appleseed Fund Appleseed
Performance |
| Timeline |
| Franklin Mutual Shares |
| Appleseed Fund Appleseed |
Franklin Mutual and Appleseed Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Appleseed Fund
The main advantage of trading using opposite Franklin Mutual and Appleseed Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Appleseed Fund 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 Appleseed Fund will offset losses from the drop in Appleseed Fund's long position.| Franklin Mutual vs. Franklin Mutual Quest | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Franklin Mutual European |
| Appleseed Fund vs. Government Securities Fund | Appleseed Fund vs. Goldman Sachs Government | Appleseed Fund vs. Us Government Securities | Appleseed Fund vs. Virtus Seix Government |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |