Correlation Between Franklin Mutual and Artisan Global
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Artisan Global 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 Artisan Global 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 Artisan Global Unconstrained, you can compare the effects of market volatilities on Franklin Mutual and Artisan Global 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 Artisan Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Artisan Global.
Diversification Opportunities for Franklin Mutual and Artisan Global
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Artisan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Artisan Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Global Uncon 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 Artisan Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Global Uncon has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Artisan Global go up and down completely randomly.
Pair Corralation between Franklin Mutual and Artisan Global
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 3.88 times more return on investment than Artisan Global. However, Franklin Mutual is 3.88 times more volatile than Artisan Global Unconstrained. It trades about 0.19 of its potential returns per unit of risk. Artisan Global Unconstrained is currently generating about -0.13 per unit of risk. If you would invest 3,136 in Franklin Mutual Global on September 4, 2024 and sell it today you would earn a total of 73.00 from holding Franklin Mutual Global or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Franklin Mutual Global vs. Artisan Global Unconstrained
Performance |
| Timeline |
| Franklin Mutual Global |
| Artisan Global Uncon |
Franklin Mutual and Artisan Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Artisan Global
The main advantage of trading using opposite Franklin Mutual and Artisan Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Artisan Global 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 Artisan Global will offset losses from the drop in Artisan Global's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
| Artisan Global vs. Artisan Developing World | Artisan Global vs. Artisan Thematic Fund | Artisan Global vs. Artisan Small Cap | Artisan Global vs. Artisan Emerging Markets |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets |