Correlation Between Franklin Mutual and Franklin Growth
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Franklin Growth 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 Franklin Growth 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 Franklin Growth Opportunities, you can compare the effects of market volatilities on Franklin Mutual and Franklin Growth 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 Franklin Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Franklin Growth.
Diversification Opportunities for Franklin Mutual and Franklin Growth
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Franklin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Franklin Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Growth Oppo 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 Franklin Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Growth Oppo has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Franklin Growth go up and down completely randomly.
Pair Corralation between Franklin Mutual and Franklin Growth
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.21 times less return on investment than Franklin Growth. But when comparing it to its historical volatility, Franklin Mutual Global is 2.04 times less risky than Franklin Growth. It trades about 0.12 of its potential returns per unit of risk. Franklin Growth Opportunities is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,190 in Franklin Growth Opportunities on August 30, 2024 and sell it today you would earn a total of 112.00 from holding Franklin Growth Opportunities or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Franklin Growth Opportunities
Performance |
| Timeline |
| Franklin Mutual Global |
| Franklin Growth Oppo |
Franklin Mutual and Franklin Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Franklin Growth
The main advantage of trading using opposite Franklin Mutual and Franklin Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Franklin Growth 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 Franklin Growth will offset losses from the drop in Franklin Growth's long position.| Franklin Mutual vs. Prudential High Yield | Franklin Mutual vs. Lord Abbett High | Franklin Mutual vs. Ppm High Yield | Franklin Mutual vs. Tiaa Cref High Yield Fund |
| Franklin Growth vs. Ab Bond Inflation | Franklin Growth vs. The Hartford Inflation | Franklin Growth vs. Ab Bond Inflation | Franklin Growth vs. Fidelity Sai Inflationfocused |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |