Correlation Between Franklin Mutual and Baron Select
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Baron Select 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 Baron Select 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 Baron Select Funds, you can compare the effects of market volatilities on Franklin Mutual and Baron Select 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 Baron Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Baron Select.
Diversification Opportunities for Franklin Mutual and Baron Select
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Baron is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds 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 Baron Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Baron Select go up and down completely randomly.
Pair Corralation between Franklin Mutual and Baron Select
Assuming the 90 days horizon Franklin Mutual is expected to generate 44.25 times less return on investment than Baron Select. But when comparing it to its historical volatility, Franklin Mutual Global is 2.67 times less risky than Baron Select. It trades about 0.02 of its potential returns per unit of risk. Baron Select Funds is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,298 in Baron Select Funds on September 15, 2024 and sell it today you would earn a total of 87.00 from holding Baron Select Funds or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Mutual Global vs. Baron Select Funds
Performance |
| Timeline |
| Franklin Mutual Global |
| Baron Select Funds |
Franklin Mutual and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Baron Select
The main advantage of trading using opposite Franklin Mutual and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Baron Select 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 Baron Select will offset losses from the drop in Baron Select'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 |
| Baron Select vs. Dreyfusstandish Global Fixed | Baron Select vs. Scharf Global Opportunity | Baron Select vs. Franklin Mutual Global | Baron Select vs. Siit Global Managed |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |