Correlation Between Franklin Mutual and Clearbridge Large
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Clearbridge Large 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 Clearbridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual European and Clearbridge Large Cap, you can compare the effects of market volatilities on Franklin Mutual and Clearbridge Large 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 Clearbridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Clearbridge Large.
Diversification Opportunities for Franklin Mutual and Clearbridge Large
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and ClearBridge is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual European and Clearbridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Large Cap 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 European are associated (or correlated) with Clearbridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Large Cap has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Clearbridge Large go up and down completely randomly.
Pair Corralation between Franklin Mutual and Clearbridge Large
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.97 times less return on investment than Clearbridge Large. But when comparing it to its historical volatility, Franklin Mutual European is 1.34 times less risky than Clearbridge Large. It trades about 0.05 of its potential returns per unit of risk. Clearbridge Large Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,097 in Clearbridge Large Cap on September 2, 2024 and sell it today you would earn a total of 1,593 from holding Clearbridge Large Cap or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual European vs. Clearbridge Large Cap
Performance |
| Timeline |
| Franklin Mutual European |
| Clearbridge Large Cap |
Franklin Mutual and Clearbridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Clearbridge Large
The main advantage of trading using opposite Franklin Mutual and Clearbridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Clearbridge Large 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 Clearbridge Large will offset losses from the drop in Clearbridge Large's long position.| Franklin Mutual vs. The Hartford Healthcare | Franklin Mutual vs. Alphacentric Lifesci Healthcare | Franklin Mutual vs. Lord Abbett Health | Franklin Mutual vs. Health Biotchnology Portfolio |
| Clearbridge Large vs. Rbc Global Opportunities | Clearbridge Large vs. Kinetics Global Fund | Clearbridge Large vs. T Rowe Price | Clearbridge Large vs. Pimco Global Multi Asset |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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