Correlation Between International Equity and Franklin Small-mid
Can any of the company-specific risk be diversified away by investing in both International Equity and Franklin Small-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 International Equity and Franklin Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Equity Series and Franklin Small Mid Cap, you can compare the effects of market volatilities on International Equity and Franklin Small-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 International Equity with a short position of Franklin Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Equity and Franklin Small-mid.
Diversification Opportunities for International Equity and Franklin Small-mid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Equity Series and Franklin Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Small Mid and International Equity 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 International Equity Series are associated (or correlated) with Franklin Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Small Mid has no effect on the direction of International Equity i.e., International Equity and Franklin Small-mid go up and down completely randomly.
Pair Corralation between International Equity and Franklin Small-mid
If you would invest 4,347 in Franklin Small Mid Cap on August 29, 2024 and sell it today you would earn a total of 621.00 from holding Franklin Small Mid Cap or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
International Equity Series vs. Franklin Small Mid Cap
Performance |
| Timeline |
| International Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Small Mid |
International Equity and Franklin Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Equity and Franklin Small-mid
The main advantage of trading using opposite International Equity and Franklin Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Equity position performs unexpectedly, Franklin Small-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 Franklin Small-mid will offset losses from the drop in Franklin Small-mid's long position.| International Equity vs. Foreign Smaller Panies | International Equity vs. International Equity Series | International Equity vs. T Rowe Price | International Equity vs. Franklin Growth Allocation |
| Franklin Small-mid vs. Federated Emerging Market | Franklin Small-mid vs. Arrow Managed Futures | Franklin Small-mid vs. Rbc Emerging Markets | Franklin Small-mid 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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