Correlation Between Franklin Mutual and Ab International
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Ab International 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 Ab International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Ab International Value, you can compare the effects of market volatilities on Franklin Mutual and Ab International 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 Ab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Ab International.
Diversification Opportunities for Franklin Mutual and Ab International
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and ABIYX is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Ab International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab International Value 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 Global are associated (or correlated) with Ab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab International Value has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Ab International go up and down completely randomly.
Pair Corralation between Franklin Mutual and Ab International
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 0.26 times more return on investment than Ab International. However, Franklin Mutual Global is 3.78 times less risky than Ab International. It trades about -0.04 of its potential returns per unit of risk. Ab International Value is currently generating about -0.15 per unit of risk. If you would invest 3,187 in Franklin Mutual Global on September 12, 2024 and sell it today you would lose (15.00) from holding Franklin Mutual Global or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Ab International Value
Performance |
| Timeline |
| Franklin Mutual Global |
| Ab International Value |
Franklin Mutual and Ab International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Ab International
The main advantage of trading using opposite Franklin Mutual and Ab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Ab International 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 Ab International will offset losses from the drop in Ab International's long position.| Franklin Mutual vs. Qs Large Cap | Franklin Mutual vs. American Mutual Fund | Franklin Mutual vs. Virtus Nfj Large Cap | Franklin Mutual vs. Avantis Large Cap |
| Ab International vs. Oakmark International Fund | Ab International vs. Dodge International Stock | Ab International vs. Oakmark International Fund | Ab International vs. Oakmark International 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |