Correlation Between Franklin Mutual and Chn Strs
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Chn Strs 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 Chn Strs 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 Chn Strs Insti, you can compare the effects of market volatilities on Franklin Mutual and Chn Strs 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 Chn Strs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Chn Strs.
Diversification Opportunities for Franklin Mutual and Chn Strs
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Chn is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Chn Strs Insti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chn Strs Insti 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 Chn Strs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chn Strs Insti has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Chn Strs go up and down completely randomly.
Pair Corralation between Franklin Mutual and Chn Strs
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.02 times less return on investment than Chn Strs. But when comparing it to its historical volatility, Franklin Mutual Global is 1.2 times less risky than Chn Strs. It trades about 0.05 of its potential returns per unit of risk. Chn Strs Insti is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 845.00 in Chn Strs Insti on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Chn Strs Insti or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Chn Strs Insti
Performance |
| Timeline |
| Franklin Mutual Global |
| Chn Strs Insti |
Franklin Mutual and Chn Strs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Chn Strs
The main advantage of trading using opposite Franklin Mutual and Chn Strs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Chn Strs 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 Chn Strs will offset losses from the drop in Chn Strs' long position.| Franklin Mutual vs. Qs Large Cap | Franklin Mutual vs. American Mutual Fund | Franklin Mutual vs. Virtus Nfj Large Cap | Franklin Mutual vs. Avantis Large Cap |
| Chn Strs vs. Artisan Global Unconstrained | Chn Strs vs. Franklin Mutual Global | Chn Strs vs. Barings Global Floating | Chn Strs vs. Ab Global Real |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |