Correlation Between Franklin Mutual and Quantex Fund
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Quantex 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 Quantex 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 Quantex Fund Retail, you can compare the effects of market volatilities on Franklin Mutual and Quantex 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 Quantex Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Quantex Fund.
Diversification Opportunities for Franklin Mutual and Quantex Fund
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Quantex is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Shares and Quantex Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Retail 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 Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Retail has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Quantex Fund go up and down completely randomly.
Pair Corralation between Franklin Mutual and Quantex Fund
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.09 times less return on investment than Quantex Fund. But when comparing it to its historical volatility, Franklin Mutual Shares is 1.17 times less risky than Quantex Fund. It trades about 0.12 of its potential returns per unit of risk. Quantex Fund Retail is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,234 in Quantex Fund Retail on September 4, 2024 and sell it today you would earn a total of 981.00 from holding Quantex Fund Retail or generate 30.33% 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. Quantex Fund Retail
Performance |
| Timeline |
| Franklin Mutual Shares |
| Quantex Fund Retail |
Franklin Mutual and Quantex Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Quantex Fund
The main advantage of trading using opposite Franklin Mutual and Quantex Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Quantex 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 Quantex Fund will offset losses from the drop in Quantex 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 |
| Quantex Fund vs. Muirfield Fund Retail | Quantex Fund vs. Balanced Fund Retail | Quantex Fund vs. Infrastructure Fund Retail | Quantex Fund vs. Global Opportunities 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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