Correlation Between Astor Long/short and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Astor Long/short 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 Astor Long/short and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Franklin Emerging Market, you can compare the effects of market volatilities on Astor Long/short 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 Astor Long/short with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Long/short and Franklin Emerging.
Diversification Opportunities for Astor Long/short and Franklin Emerging
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund 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 Astor Long/short 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 Astor Longshort Fund 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 Astor Long/short i.e., Astor Long/short and Franklin Emerging go up and down completely randomly.
Pair Corralation between Astor Long/short and Franklin Emerging
Assuming the 90 days horizon Astor Long/short is expected to generate 1.08 times less return on investment than Franklin Emerging. In addition to that, Astor Long/short is 1.83 times more volatile than Franklin Emerging Market. It trades about 0.23 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.46 per unit of volatility. If you would invest 1,197 in Franklin Emerging Market on June 8, 2025 and sell it today you would earn a total of 63.00 from holding Franklin Emerging Market or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Franklin Emerging Market
Performance |
| Timeline |
| Astor Long/short |
| Franklin Emerging Market |
Astor Long/short and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Long/short and Franklin Emerging
The main advantage of trading using opposite Astor Long/short and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Long/short 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.| Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Star Fund | Astor Long/short vs. Astor Longshort Fund | Astor Long/short vs. Astor Longshort Fund |
| Franklin Emerging vs. Franklin Mutual Beacon | Franklin Emerging vs. Templeton Developing Markets | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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