Correlation Between Franklin Resources and BM European
Can any of the company-specific risk be diversified away by investing in both Franklin Resources and BM European 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 Resources and BM European into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and BM European Value, you can compare the effects of market volatilities on Franklin Resources and BM European 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 Resources with a short position of BM European. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and BM European.
Diversification Opportunities for Franklin Resources and BM European
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and BMRRY is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources and BM European Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BM European Value and Franklin Resources 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 Resources are associated (or correlated) with BM European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BM European Value has no effect on the direction of Franklin Resources i.e., Franklin Resources and BM European go up and down completely randomly.
Pair Corralation between Franklin Resources and BM European
Considering the 90-day investment horizon Franklin Resources is expected to generate 0.43 times more return on investment than BM European. However, Franklin Resources is 2.34 times less risky than BM European. It trades about -0.05 of its potential returns per unit of risk. BM European Value is currently generating about -0.16 per unit of risk. If you would invest 2,452 in Franklin Resources on September 11, 2025 and sell it today you would lose (140.00) from holding Franklin Resources or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Resources vs. BM European Value
Performance |
| Timeline |
| Franklin Resources |
| BM European Value |
Franklin Resources and BM European Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Resources and BM European
The main advantage of trading using opposite Franklin Resources and BM European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources position performs unexpectedly, BM European 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 BM European will offset losses from the drop in BM European's long position.| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
| BM European vs. Ocado Group plc | BM European vs. Greggs plc | BM European vs. Greggs plc | BM European vs. Calbee Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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