Correlation Between Siit Emerging and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Siit Emerging and Franklin Emerging 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 Siit Emerging and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Franklin Emerging Market, you can compare the effects of market volatilities on Siit Emerging and Franklin Emerging 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 Siit Emerging with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Franklin Emerging.
Diversification Opportunities for Siit Emerging and Franklin Emerging
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Franklin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Siit Emerging 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 Siit Emerging Markets are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Siit Emerging i.e., Siit Emerging and Franklin Emerging go up and down completely randomly.
Pair Corralation between Siit Emerging and Franklin Emerging
Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Franklin Emerging. In addition to that, Siit Emerging is 2.81 times more volatile than Franklin Emerging Market. It trades about -0.15 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.2 per unit of volatility. If you would invest 1,200 in Franklin Emerging Market on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Franklin Emerging Market or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Franklin Emerging Market
Performance |
| Timeline |
| Siit Emerging Markets |
| Franklin Emerging Market |
Siit Emerging and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Franklin Emerging
The main advantage of trading using opposite Siit Emerging and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging position performs unexpectedly, Franklin Emerging 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 Emerging will offset losses from the drop in Franklin Emerging's long position.| Siit Emerging vs. Vanguard Emerging Markets | Siit Emerging vs. Vanguard Emerging Markets | Siit Emerging vs. Vanguard Emerging Markets | Siit Emerging vs. American Funds New |
| Franklin Emerging vs. Nuveen Winslow Large Cap | Franklin Emerging vs. Siit Large Cap | Franklin Emerging vs. William Blair Large | Franklin Emerging vs. Massmutual Select T |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |