Correlation Between Franklin Mutual and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Franklin Mutual and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Strategic Asset.
Diversification Opportunities for Franklin Mutual and Strategic Asset
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Strategic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Shares and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Strategic Asset go up and down completely randomly.
Pair Corralation between Franklin Mutual and Strategic Asset
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.51 times less return on investment than Strategic Asset. In addition to that, Franklin Mutual is 1.18 times more volatile than Strategic Asset Management. It trades about 0.1 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.18 per unit of volatility. If you would invest 2,335 in Strategic Asset Management on June 8, 2025 and sell it today you would earn a total of 154.00 from holding Strategic Asset Management or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Shares vs. Strategic Asset Management
Performance |
| Timeline |
| Franklin Mutual Shares |
| Strategic Asset Mana |
Franklin Mutual and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Strategic Asset
The main advantage of trading using opposite Franklin Mutual and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Franklin Mutual vs. Qs Large Cap | Franklin Mutual vs. Aam Select Income | Franklin Mutual vs. Ab Select Equity | Franklin Mutual vs. Wmcanx |
| Strategic Asset vs. Us Government Securities | Strategic Asset vs. Us Government Securities | Strategic Asset vs. Davis Government Bond | Strategic Asset vs. Ridgeworth Seix Government |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |