Correlation Between Franklin Mutual and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Fidelity Series 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 Fidelity Series 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 Fidelity Series Government, you can compare the effects of market volatilities on Franklin Mutual and Fidelity Series 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 Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Fidelity Series.
Diversification Opportunities for Franklin Mutual and Fidelity Series
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Fidelity is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Fidelity Series Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Gove 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 Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Gove has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Fidelity Series go up and down completely randomly.
Pair Corralation between Franklin Mutual and Fidelity Series
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 2.14 times more return on investment than Fidelity Series. However, Franklin Mutual is 2.14 times more volatile than Fidelity Series Government. It trades about 0.04 of its potential returns per unit of risk. Fidelity Series Government is currently generating about 0.07 per unit of risk. If you would invest 2,930 in Franklin Mutual Global on September 14, 2024 and sell it today you would earn a total of 226.00 from holding Franklin Mutual Global or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Fidelity Series Government
Performance |
| Timeline |
| Franklin Mutual Global |
| Fidelity Series Gove |
Franklin Mutual and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Fidelity Series
The main advantage of trading using opposite Franklin Mutual and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Franklin Mutual vs. Energy Basic Materials | Franklin Mutual vs. Jennison Natural Resources | Franklin Mutual vs. Firsthand Alternative Energy | Franklin Mutual vs. Alpsalerian Energy Infrastructure |
| Fidelity Series vs. Franklin Mutual Global | Fidelity Series vs. Morningstar Global Income | Fidelity Series vs. Legg Mason Global | Fidelity Series vs. Investec Global Franchise |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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