Correlation Between Franklin Mutual and Franklin Low
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Franklin Low 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 Low 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 Low Duration, you can compare the effects of market volatilities on Franklin Mutual and Franklin Low 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 Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Franklin Low.
Diversification Opportunities for Franklin Mutual and Franklin Low
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Franklin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Franklin Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Low Duration 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 Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Low Duration has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Franklin Low go up and down completely randomly.
Pair Corralation between Franklin Mutual and Franklin Low
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 5.26 times more return on investment than Franklin Low. However, Franklin Mutual is 5.26 times more volatile than Franklin Low Duration. It trades about 0.05 of its potential returns per unit of risk. Franklin Low Duration is currently generating about 0.17 per unit of risk. If you would invest 2,907 in Franklin Mutual Global on August 29, 2024 and sell it today you would earn a total of 298.00 from holding Franklin Mutual Global or generate 10.25% 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 Low Duration
Performance |
| Timeline |
| Franklin Mutual Global |
| Franklin Low Duration |
Franklin Mutual and Franklin Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Franklin Low
The main advantage of trading using opposite Franklin Mutual and Franklin Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Franklin Low 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 Low will offset losses from the drop in Franklin Low's long position.| Franklin Mutual vs. Americafirst Large Cap | Franklin Mutual vs. Dunham Large Cap | Franklin Mutual vs. Tax Managed Large Cap | Franklin Mutual vs. Aqr Large Cap |
| Franklin Low vs. Permanent Portfolio Class | Franklin Low vs. HUMANA INC | Franklin Low vs. Aquagold International | Franklin Low vs. Barloworld Ltd ADR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |