Correlation Between Franklin Emerging and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Mfs 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 Mfs 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 Mfs Emerging Markets, you can compare the effects of market volatilities on Franklin Emerging and Mfs 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Mfs Emerging.
Diversification Opportunities for Franklin Emerging and Mfs Emerging
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Franklin and Mfs is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets 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 Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Mfs Emerging go up and down completely randomly.
Pair Corralation between Franklin Emerging and Mfs Emerging
Assuming the 90 days horizon Franklin Emerging Market is expected to generate 0.93 times more return on investment than Mfs Emerging. However, Franklin Emerging Market is 1.07 times less risky than Mfs Emerging. It trades about 0.44 of its potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.34 per unit of risk. If you would invest 1,204 in Franklin Emerging Market on June 11, 2025 and sell it today you would earn a total of 59.00 from holding Franklin Emerging Market or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Emerging Market vs. Mfs Emerging Markets
Performance |
| Timeline |
| Franklin Emerging Market |
| Mfs Emerging Markets |
Franklin Emerging and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Mfs Emerging
The main advantage of trading using opposite Franklin Emerging and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Mfs 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 Mfs Emerging will offset losses from the drop in Mfs Emerging'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 |
| Mfs Emerging vs. Janus High Yield Fund | Mfs Emerging vs. Payden High Income | Mfs Emerging vs. T Rowe Price | Mfs Emerging vs. Buffalo High Yield |
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 Positions Ratings module to 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.
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