Correlation Between Franklin Emerging and Clarion Partners
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Clarion Partners 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 Clarion Partners 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 Clarion Partners Real, you can compare the effects of market volatilities on Franklin Emerging and Clarion Partners 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 Clarion Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Clarion Partners.
Diversification Opportunities for Franklin Emerging and Clarion Partners
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Clarion is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Clarion Partners Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarion Partners Real 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 Clarion Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarion Partners Real has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Clarion Partners go up and down completely randomly.
Pair Corralation between Franklin Emerging and Clarion Partners
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 4.15 times more return on investment than Clarion Partners. However, Franklin Emerging is 4.15 times more volatile than Clarion Partners Real. It trades about 0.32 of its potential returns per unit of risk. Clarion Partners Real is currently generating about 0.29 per unit of risk. If you would invest 1,249 in Franklin Emerging Market on August 21, 2025 and sell it today you would earn a total of 50.00 from holding Franklin Emerging Market or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Franklin Emerging Market vs. Clarion Partners Real
Performance |
| Timeline |
| Franklin Emerging Market |
| Clarion Partners Real |
Franklin Emerging and Clarion Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Clarion Partners
The main advantage of trading using opposite Franklin Emerging and Clarion Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Clarion Partners 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 Clarion Partners will offset losses from the drop in Clarion Partners' long position.| Franklin Emerging vs. The Hartford Healthcare | Franklin Emerging vs. T Rowe Price | Franklin Emerging vs. Invesco Global Health | Franklin Emerging vs. Schwab Health Care |
| Clarion Partners vs. T Rowe Price | Clarion Partners vs. Qs Growth Fund | Clarion Partners vs. Auer Growth Fund | Clarion Partners vs. Stringer Growth Fund |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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