Correlation Between Franklin Mutual and Siit Global
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Siit Global 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 Siit Global 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 Siit Global Managed, you can compare the effects of market volatilities on Franklin Mutual and Siit Global 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 Siit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Siit Global.
Diversification Opportunities for Franklin Mutual and Siit Global
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Siit is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Siit Global Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Global Managed 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 Siit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Global Managed has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Siit Global go up and down completely randomly.
Pair Corralation between Franklin Mutual and Siit Global
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.77 times less return on investment than Siit Global. In addition to that, Franklin Mutual is 1.25 times more volatile than Siit Global Managed. It trades about 0.01 of its total potential returns per unit of risk. Siit Global Managed is currently generating about 0.02 per unit of volatility. If you would invest 1,036 in Siit Global Managed on October 9, 2024 and sell it today you would earn a total of 73.00 from holding Siit Global Managed or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Siit Global Managed
Performance |
| Timeline |
| Franklin Mutual Global |
| Siit Global Managed |
Franklin Mutual and Siit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Siit Global
The main advantage of trading using opposite Franklin Mutual and Siit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Siit Global 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 Siit Global will offset losses from the drop in Siit Global's long position.| Franklin Mutual vs. Goldman Sachs Technology | Franklin Mutual vs. Icon Information Technology | Franklin Mutual vs. Science Technology Fund | Franklin Mutual vs. Columbia Global Technology |
| Siit Global vs. Vy T Rowe | Siit Global vs. Tax Managed Mid Small | Siit Global vs. Tax Managed Mid Small | Siit Global vs. Schwab Small Cap Index |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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