Correlation Between Applied Finance and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Applied Finance and Franklin Mutual 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 Applied Finance and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Finance Explorer and Franklin Mutual Global, you can compare the effects of market volatilities on Applied Finance and Franklin Mutual 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 Applied Finance with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Finance and Franklin Mutual.
Diversification Opportunities for Applied Finance and Franklin Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Applied Finance 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 Applied Finance Explorer are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Applied Finance i.e., Applied Finance and Franklin Mutual go up and down completely randomly.
Pair Corralation between Applied Finance and Franklin Mutual
If you would invest 2,140 in Applied Finance Explorer on June 11, 2025 and sell it today you would earn a total of 264.00 from holding Applied Finance Explorer or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Applied Finance Explorer vs. Franklin Mutual Global
Performance |
| Timeline |
| Applied Finance Explorer |
| Franklin Mutual Global |
Applied Finance and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Finance and Franklin Mutual
The main advantage of trading using opposite Applied Finance and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Finance position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.The idea behind Applied Finance Explorer and Franklin Mutual Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Franklin Mutual vs. Vanguard Energy Index | Franklin Mutual vs. Jennison Natural Resources | Franklin Mutual vs. Icon Natural Resources | Franklin Mutual vs. Franklin Natural Resources |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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