Correlation Between Franklin Mutual and Catalystcifc Floating
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Catalystcifc Floating 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 Catalystcifc Floating 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 Catalystcifc Floating Rate, you can compare the effects of market volatilities on Franklin Mutual and Catalystcifc Floating 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 Catalystcifc Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Catalystcifc Floating.
Diversification Opportunities for Franklin Mutual and Catalystcifc Floating
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Catalystcifc is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystcifc Floating 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 Catalystcifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystcifc Floating has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Catalystcifc Floating go up and down completely randomly.
Pair Corralation between Franklin Mutual and Catalystcifc Floating
Assuming the 90 days horizon Franklin Mutual Global is expected to under-perform the Catalystcifc Floating. In addition to that, Franklin Mutual is 5.72 times more volatile than Catalystcifc Floating Rate. It trades about -0.07 of its total potential returns per unit of risk. Catalystcifc Floating Rate is currently generating about 0.26 per unit of volatility. If you would invest 916.00 in Catalystcifc Floating Rate on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Catalystcifc Floating Rate or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Franklin Mutual Global vs. Catalystcifc Floating Rate
Performance |
| Timeline |
| Franklin Mutual Global |
| Catalystcifc Floating |
Franklin Mutual and Catalystcifc Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Catalystcifc Floating
The main advantage of trading using opposite Franklin Mutual and Catalystcifc Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Catalystcifc Floating 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 Catalystcifc Floating will offset losses from the drop in Catalystcifc Floating's long position.| Franklin Mutual vs. Ab Small Cap | Franklin Mutual vs. Cardinal Small Cap | Franklin Mutual vs. Pace Smallmedium Value | Franklin Mutual vs. Vy Columbia Small |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |