Correlation Between Franklin Mutual and City National
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and City National 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 City National 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 City National Rochdale, you can compare the effects of market volatilities on Franklin Mutual and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and City National.
Diversification Opportunities for Franklin Mutual and City National
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and City is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and City National go up and down completely randomly.
Pair Corralation between Franklin Mutual and City National
If you would invest 2,855 in Franklin Mutual Global on September 4, 2024 and sell it today you would earn a total of 354.00 from holding Franklin Mutual Global or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
Franklin Mutual Global vs. City National Rochdale
Performance |
| Timeline |
| Franklin Mutual Global |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Mutual and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and City National
The main advantage of trading using opposite Franklin Mutual and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, City National 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 City National will offset losses from the drop in City National'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 |
| City National vs. Sarofim Equity | City National vs. Ultra Short Fixed Income | City National vs. Jpmorgan Equity Income | City National vs. Artisan Select Equity |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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