Correlation Between Franklin Mutual and Evaluator Aggressive
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Evaluator Aggressive 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 Mutual and Evaluator Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Shares and Evaluator Aggressive Rms, you can compare the effects of market volatilities on Franklin Mutual and Evaluator Aggressive 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 Mutual with a short position of Evaluator Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Evaluator Aggressive.
Diversification Opportunities for Franklin Mutual and Evaluator Aggressive
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Evaluator is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Shares and Evaluator Aggressive Rms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaluator Aggressive Rms and Franklin Mutual 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 Mutual Shares are associated (or correlated) with Evaluator Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaluator Aggressive Rms has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Evaluator Aggressive go up and down completely randomly.
Pair Corralation between Franklin Mutual and Evaluator Aggressive
Assuming the 90 days horizon Franklin Mutual Shares is expected to generate 1.18 times more return on investment than Evaluator Aggressive. However, Franklin Mutual is 1.18 times more volatile than Evaluator Aggressive Rms. It trades about 0.43 of its potential returns per unit of risk. Evaluator Aggressive Rms is currently generating about 0.33 per unit of risk. If you would invest 2,527 in Franklin Mutual Shares on April 3, 2025 and sell it today you would earn a total of 147.00 from holding Franklin Mutual Shares or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Mutual Shares vs. Evaluator Aggressive Rms
Performance |
| Timeline |
| Franklin Mutual Shares |
| Evaluator Aggressive Rms |
Franklin Mutual and Evaluator Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Evaluator Aggressive
The main advantage of trading using opposite Franklin Mutual and Evaluator Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Evaluator Aggressive 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 Evaluator Aggressive will offset losses from the drop in Evaluator Aggressive's long position.| Franklin Mutual vs. Franklin Mutual Beacon | Franklin Mutual vs. Templeton Developing Markets | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Mutual Global |
| Evaluator Aggressive vs. Evaluator Aggressive Rms | Evaluator Aggressive vs. Evaluator Tactically Managed | Evaluator Aggressive vs. Evaluator Moderate Rms | Evaluator Aggressive vs. Evaluator Growth Rms |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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