Correlation Between Franklin Emerging and Calvert Large
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Calvert Large 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 Emerging and Calvert Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Emerging Market and Calvert Large Cap, you can compare the effects of market volatilities on Franklin Emerging and Calvert Large 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 Emerging with a short position of Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Calvert Large.
Diversification Opportunities for Franklin Emerging and Calvert Large
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Calvert is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Franklin Emerging 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 Emerging Market are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Calvert Large go up and down completely randomly.
Pair Corralation between Franklin Emerging and Calvert Large
Assuming the 90 days horizon Franklin Emerging is expected to generate 1.43 times less return on investment than Calvert Large. But when comparing it to its historical volatility, Franklin Emerging Market is 4.26 times less risky than Calvert Large. It trades about 0.48 of its potential returns per unit of risk. Calvert Large Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,273 in Calvert Large Cap on June 4, 2025 and sell it today you would earn a total of 244.00 from holding Calvert Large Cap or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Calvert Large Cap
Performance |
| Timeline |
| Franklin Emerging Market |
| Calvert Large Cap |
Franklin Emerging and Calvert Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Calvert Large
The main advantage of trading using opposite Franklin Emerging and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Calvert Large 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 Calvert Large will offset losses from the drop in Calvert Large's long position.| Franklin Emerging vs. Franklin Mutual Beacon | Franklin Emerging vs. Templeton Developing Markets | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global |
| Calvert Large vs. Prudential Qma Large Cap | Calvert Large vs. Vanguard Large Cap Index | Calvert Large vs. Dreyfus Large Cap | Calvert Large vs. Siit Large Cap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |