Correlation Between Franklin Mutual and Clearbridge Mid
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Clearbridge Mid 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 Mid 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 Mid Cap, you can compare the effects of market volatilities on Franklin Mutual and Clearbridge Mid 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 Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Clearbridge Mid.
Diversification Opportunities for Franklin Mutual and Clearbridge Mid
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Clearbridge is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual European and Clearbridge Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Mid 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 Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Mid Cap has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Clearbridge Mid go up and down completely randomly.
Pair Corralation between Franklin Mutual and Clearbridge Mid
Assuming the 90 days horizon Franklin Mutual European is expected to generate 0.86 times more return on investment than Clearbridge Mid. However, Franklin Mutual European is 1.16 times less risky than Clearbridge Mid. It trades about 0.28 of its potential returns per unit of risk. Clearbridge Mid Cap is currently generating about -0.27 per unit of risk. If you would invest 2,502 in Franklin Mutual European on December 1, 2024 and sell it today you would earn a total of 117.00 from holding Franklin Mutual European or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual European vs. Clearbridge Mid Cap
Performance |
| Timeline |
| Franklin Mutual European |
| Clearbridge Mid Cap |
Franklin Mutual and Clearbridge Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Clearbridge Mid
The main advantage of trading using opposite Franklin Mutual and Clearbridge Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Clearbridge Mid 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 Mid will offset losses from the drop in Clearbridge Mid's long position.| Franklin Mutual vs. Intal High Relative | Franklin Mutual vs. Rbb Fund | Franklin Mutual vs. Victory Incore Fund | Franklin Mutual vs. Vanguard Growth Index |
| Clearbridge Mid vs. Ab Bond Inflation | Clearbridge Mid vs. Short Duration Inflation | Clearbridge Mid vs. Ab Bond Inflation | Clearbridge Mid vs. The Hartford Inflation |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |