Correlation Between Dws Global and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Dws Global 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 Dws Global and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dws Global Macro and Franklin Mutual Global, you can compare the effects of market volatilities on Dws Global 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 Dws Global with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dws Global and Franklin Mutual.
Diversification Opportunities for Dws Global and Franklin Mutual
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dws and Franklin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dws Global Macro 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 Dws Global 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 Dws Global Macro 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 Dws Global i.e., Dws Global and Franklin Mutual go up and down completely randomly.
Pair Corralation between Dws Global and Franklin Mutual
Assuming the 90 days horizon Dws Global Macro is expected to generate 0.52 times more return on investment than Franklin Mutual. However, Dws Global Macro is 1.93 times less risky than Franklin Mutual. It trades about 0.15 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.06 per unit of risk. If you would invest 1,083 in Dws Global Macro on August 27, 2025 and sell it today you would earn a total of 37.00 from holding Dws Global Macro or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dws Global Macro vs. Franklin Mutual Global
Performance |
| Timeline |
| Dws Global Macro |
| Franklin Mutual Global |
Dws Global and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dws Global and Franklin Mutual
The main advantage of trading using opposite Dws Global and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dws Global 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.| Dws Global vs. Blackrock Conservative Prprdptfinstttnl | Dws Global vs. Prudential Core Conservative | Dws Global vs. Global Diversified Income | Dws Global vs. Fulcrum Diversified Absolute |
| Franklin Mutual vs. Ab Global Bond | Franklin Mutual vs. Qs Global Equity | Franklin Mutual vs. Barings Global Floating | Franklin Mutual vs. Gamco Global Opportunity |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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