Correlation Between Franklin Mutual and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Ep 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 Ep Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Beacon and Ep Emerging Markets, you can compare the effects of market volatilities on Franklin Mutual and Ep 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Ep Emerging.
Diversification Opportunities for Franklin Mutual and Ep Emerging
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and EPEIX is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Beacon and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Beacon are associated (or correlated) with Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Ep Emerging go up and down completely randomly.
Pair Corralation between Franklin Mutual and Ep Emerging
Assuming the 90 days horizon Franklin Mutual Beacon is expected to generate 0.54 times more return on investment than Ep Emerging. However, Franklin Mutual Beacon is 1.84 times less risky than Ep Emerging. It trades about 0.0 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.05 per unit of risk. If you would invest 1,721 in Franklin Mutual Beacon on September 13, 2024 and sell it today you would lose (1.00) from holding Franklin Mutual Beacon or give up 0.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Beacon vs. Ep Emerging Markets
Performance |
| Timeline |
| Franklin Mutual Beacon |
| Ep Emerging Markets |
Franklin Mutual and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Ep Emerging
The main advantage of trading using opposite Franklin Mutual and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Ep 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Franklin Mutual vs. T Rowe Price | Franklin Mutual vs. Nasdaq 100 Index Fund | Franklin Mutual vs. Balanced Fund Investor | Franklin Mutual vs. Volumetric Fund Volumetric |
| Ep Emerging vs. Oaktree Diversifiedome | Ep Emerging vs. Sentinel Small Pany | Ep Emerging vs. Davenport Small Cap | Ep Emerging vs. Fidelity Advisor Diversified |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |