Correlation Between Franklin Mutual and Doubleline Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Doubleline Emerging 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 Doubleline Emerging 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 Doubleline Emerging Markets, you can compare the effects of market volatilities on Franklin Mutual and Doubleline Emerging 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 Doubleline Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Doubleline Emerging.
Diversification Opportunities for Franklin Mutual and Doubleline Emerging
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Doubleline is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging 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 Doubleline Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Emerging has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Doubleline Emerging go up and down completely randomly.
Pair Corralation between Franklin Mutual and Doubleline Emerging
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 1.64 times more return on investment than Doubleline Emerging. However, Franklin Mutual is 1.64 times more volatile than Doubleline Emerging Markets. It trades about 0.05 of its potential returns per unit of risk. Doubleline Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 3,089 in Franklin Mutual Global on September 3, 2024 and sell it today you would earn a total of 132.00 from holding Franklin Mutual Global or generate 4.27% 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. Doubleline Emerging Markets
Performance |
| Timeline |
| Franklin Mutual Global |
| Doubleline Emerging |
Franklin Mutual and Doubleline Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Doubleline Emerging
The main advantage of trading using opposite Franklin Mutual and Doubleline Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Doubleline Emerging 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 Doubleline Emerging will offset losses from the drop in Doubleline Emerging's long position.| Franklin Mutual vs. Dodge Global Stock | Franklin Mutual vs. T Rowe Price | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
| Doubleline Emerging vs. Qs Moderate Growth | Doubleline Emerging vs. Hood River New | Doubleline Emerging vs. T Rowe Price | Doubleline Emerging vs. T Rowe Price |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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