Correlation Between Franklin Emerging and Investec Global
Can any of the company-specific risk be diversified away by investing in both Franklin Emerging and Investec Global 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 Investec Global 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 Investec Global Franchise, you can compare the effects of market volatilities on Franklin Emerging and Investec Global 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 Investec Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Emerging and Investec Global.
Diversification Opportunities for Franklin Emerging and Investec Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Investec is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Emerging Market and Investec Global Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Global Franchise 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 Investec Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Global Franchise has no effect on the direction of Franklin Emerging i.e., Franklin Emerging and Investec Global go up and down completely randomly.
Pair Corralation between Franklin Emerging and Investec Global
Assuming the 90 days horizon Franklin Emerging is expected to generate 1.01 times less return on investment than Investec Global. But when comparing it to its historical volatility, Franklin Emerging Market is 3.16 times less risky than Investec Global. It trades about 0.33 of its potential returns per unit of risk. Investec Global Franchise is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,973 in Investec Global Franchise on September 4, 2025 and sell it today you would earn a total of 84.00 from holding Investec Global Franchise or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Franklin Emerging Market vs. Investec Global Franchise
Performance |
| Timeline |
| Franklin Emerging Market |
| Investec Global Franchise |
Franklin Emerging and Investec Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Emerging and Investec Global
The main advantage of trading using opposite Franklin Emerging and Investec Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Emerging position performs unexpectedly, Investec Global 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 Investec Global will offset losses from the drop in Investec Global's long position.| Franklin Emerging vs. Live Oak Health | Franklin Emerging vs. Alphacentric Lifesci Healthcare | Franklin Emerging vs. Prudential Health Sciences | Franklin Emerging vs. Hartford Healthcare Hls |
| Investec Global vs. Angel Oak Multi Strategy | Investec Global vs. Franklin Emerging Market | Investec Global vs. Pace International Emerging | Investec Global vs. Ashmore Emerging Markets |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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