Correlation Between Franklin Mutual and Simt Multi-asset
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Simt Multi-asset 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 Simt Multi-asset 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 Simt Multi Asset Capital, you can compare the effects of market volatilities on Franklin Mutual and Simt Multi-asset 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 Simt Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Simt Multi-asset.
Diversification Opportunities for Franklin Mutual and Simt Multi-asset
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Simt is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Simt Multi-asset go up and down completely randomly.
Pair Corralation between Franklin Mutual and Simt Multi-asset
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.04 times less return on investment than Simt Multi-asset. In addition to that, Franklin Mutual is 4.17 times more volatile than Simt Multi Asset Capital. It trades about 0.04 of its total potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.16 per unit of volatility. If you would invest 982.00 in Simt Multi Asset Capital on September 4, 2024 and sell it today you would earn a total of 75.00 from holding Simt Multi Asset Capital or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Simt Multi Asset Capital
Performance |
| Timeline |
| Franklin Mutual Global |
| Simt Multi Asset |
Franklin Mutual and Simt Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Simt Multi-asset
The main advantage of trading using opposite Franklin Mutual and Simt Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Simt Multi-asset 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 Simt Multi-asset will offset losses from the drop in Simt Multi-asset's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Templeton Foreign Fund |
| Simt Multi-asset vs. Simt Multi Asset Accumulation | Simt Multi-asset vs. Saat Market Growth | Simt Multi-asset vs. Simt Real Return | Simt Multi-asset vs. Simt Small Cap |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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