Correlation Between Ab Select and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Ab Select and Franklin 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 Ab Select and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Select Longshort and Franklin Emerging Market, you can compare the effects of market volatilities on Ab Select and Franklin 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 Ab Select with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Select and Franklin Emerging.
Diversification Opportunities for Ab Select and Franklin Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ASCLX and Franklin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Longshort and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Ab Select 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 Ab Select Longshort are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Ab Select i.e., Ab Select and Franklin Emerging go up and down completely randomly.
Pair Corralation between Ab Select and Franklin Emerging
Assuming the 90 days horizon Ab Select is expected to generate 1.05 times less return on investment than Franklin Emerging. In addition to that, Ab Select is 1.83 times more volatile than Franklin Emerging Market. It trades about 0.25 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.48 per unit of volatility. If you would invest 1,188 in Franklin Emerging Market on May 29, 2025 and sell it today you would earn a total of 65.00 from holding Franklin Emerging Market or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Select Longshort vs. Franklin Emerging Market
Performance |
| Timeline |
| Ab Select Longshort |
| Franklin Emerging Market |
Ab Select and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Select and Franklin Emerging
The main advantage of trading using opposite Ab Select and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select position performs unexpectedly, Franklin 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 Franklin Emerging will offset losses from the drop in Franklin Emerging's long position.| Ab Select vs. Tiaa Cref Lifestyle Moderate | Ab Select vs. Jpmorgan Smartretirement 2035 | Ab Select vs. Voya Target Retirement | Ab Select vs. Trowe Price Retirement |
| Franklin Emerging vs. Prudential High Yield | Franklin Emerging vs. T Rowe Price | Franklin Emerging vs. Pace High Yield | Franklin Emerging vs. Saat Tax Managed Aggressive |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |