Correlation Between Franklin Emerging and Gmo Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Gmo Emerging 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 Gmo Emerging 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 Gmo Emerging Ntry, you can compare the effects of market volatilities on Franklin Emerging and Gmo Emerging 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 Gmo Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Gmo Emerging.
Diversification Opportunities for Franklin Emerging and Gmo Emerging
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Gmo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Gmo Emerging Ntry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Emerging Ntry 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 Gmo Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Emerging Ntry has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Gmo Emerging go up and down completely randomly.
Pair Corralation between Franklin Emerging and Gmo Emerging
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.3 times more return on investment than Gmo Emerging. However, Franklin Emerging Market is 3.3 times less risky than Gmo Emerging. It trades about 0.32 of its potential returns per unit of risk. Gmo Emerging Ntry is currently generating about 0.03 per unit of risk. If you would invest 1,265 in Franklin Emerging Market on September 8, 2025 and sell it today you would earn a total of 54.00 from holding Franklin Emerging Market or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Gmo Emerging Ntry
Performance |
| Timeline |
| Franklin Emerging Market |
| Gmo Emerging Ntry |
Franklin Emerging and Gmo Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Gmo Emerging
The main advantage of trading using opposite Franklin Emerging and Gmo Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Gmo Emerging 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 Gmo Emerging will offset losses from the drop in Gmo Emerging's long position.| Franklin Emerging vs. Rbc Emerging Markets | Franklin Emerging vs. Fkhemx | Franklin Emerging vs. T Rowe Price | Franklin Emerging vs. Fbjygx |
| Gmo Emerging vs. Amg Yacktman Focused | Gmo Emerging vs. Amg Yacktman Focused | Gmo Emerging vs. Fidelity Advisor Large | Gmo Emerging vs. Fidelity Small 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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