Correlation Between Franklin Mutual and Causeway Concentrated
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Causeway Concentrated 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 Causeway Concentrated 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 Causeway Concentrated Equity, you can compare the effects of market volatilities on Franklin Mutual and Causeway Concentrated 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 Causeway Concentrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Causeway Concentrated.
Diversification Opportunities for Franklin Mutual and Causeway Concentrated
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Causeway is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Causeway Concentrated Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Causeway Concentrated 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 Causeway Concentrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Causeway Concentrated has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Causeway Concentrated go up and down completely randomly.
Pair Corralation between Franklin Mutual and Causeway Concentrated
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 | 4.76% |
| Values | Daily Returns |
Franklin Mutual Global vs. Causeway Concentrated Equity
Performance |
| Timeline |
| Franklin Mutual Global |
| Causeway Concentrated |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Mutual and Causeway Concentrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Causeway Concentrated
The main advantage of trading using opposite Franklin Mutual and Causeway Concentrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Causeway Concentrated 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 Causeway Concentrated will offset losses from the drop in Causeway Concentrated's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Templeton Foreign Fund |
| Causeway Concentrated vs. Issachar Fund Class | Causeway Concentrated vs. Touchstone Large Cap | Causeway Concentrated vs. Old Westbury Large | Causeway Concentrated vs. Artisan Thematic 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.
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