Correlation Between Franklin Emerging and Catalyst/warrington
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Catalyst/warrington 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 Catalyst/warrington 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 Catalystwarrington Strategic Program, you can compare the effects of market volatilities on Franklin Emerging and Catalyst/warrington 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 Catalyst/warrington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Catalyst/warrington.
Diversification Opportunities for Franklin Emerging and Catalyst/warrington
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Catalyst/warrington is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Catalystwarrington Strategic P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/warrington 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 Catalyst/warrington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/warrington has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Catalyst/warrington go up and down completely randomly.
Pair Corralation between Franklin Emerging and Catalyst/warrington
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.78 times more return on investment than Catalyst/warrington. However, Franklin Emerging Market is 1.28 times less risky than Catalyst/warrington. It trades about 0.3 of its potential returns per unit of risk. Catalystwarrington Strategic Program is currently generating about -0.12 per unit of risk. If you would invest 1,254 in Franklin Emerging Market on August 26, 2025 and sell it today you would earn a total of 48.00 from holding Franklin Emerging Market or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Catalystwarrington Strategic P
Performance |
| Timeline |
| Franklin Emerging Market |
| Catalyst/warrington |
Franklin Emerging and Catalyst/warrington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Catalyst/warrington
The main advantage of trading using opposite Franklin Emerging and Catalyst/warrington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Catalyst/warrington 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 Catalyst/warrington will offset losses from the drop in Catalyst/warrington's long position.| Franklin Emerging vs. Templeton Developing Markets | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global |
| Catalyst/warrington vs. Hennessy Nerstone Mid | Catalyst/warrington vs. Goldman Sachs Small | Catalyst/warrington vs. Ultrasmall Cap Profund Ultrasmall Cap | Catalyst/warrington vs. Palm Valley Capital |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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