Correlation Between Simt Multi-asset and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset 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 Simt Multi-asset and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Franklin Mutual Global, you can compare the effects of market volatilities on Simt Multi-asset 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 Simt Multi-asset with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Franklin Mutual.
Diversification Opportunities for Simt Multi-asset and Franklin Mutual
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simt and Franklin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Franklin Mutual go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Franklin Mutual
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to under-perform the Franklin Mutual. But the mutual fund apears to be less risky and, when comparing its historical volatility, Simt Multi Asset Inflation is 2.39 times less risky than Franklin Mutual. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Franklin Mutual Global is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,163 in Franklin Mutual Global on August 24, 2024 and sell it today you would lose (2.00) from holding Franklin Mutual Global or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Franklin Mutual Global
Performance |
| Timeline |
| Simt Multi Asset |
| Franklin Mutual Global |
Simt Multi-asset and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Franklin Mutual
The main advantage of trading using opposite Simt Multi-asset and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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.| Simt Multi-asset vs. Advent Claymore Convertible | Simt Multi-asset vs. Fidelity Vertible Securities | Simt Multi-asset vs. Gabelli Convertible And | Simt Multi-asset vs. Rationalpier 88 Convertible |
| Franklin Mutual vs. Vanguard Global Credit | Franklin Mutual vs. Morgan Stanley Global | Franklin Mutual vs. Rbb Fund Trust | Franklin Mutual vs. Nuveen Global Real |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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