Correlation Between Franklin Equity and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both Franklin Equity and Doubleline Core 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 Equity and Doubleline Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Equity Income and Doubleline Core Fixed, you can compare the effects of market volatilities on Franklin Equity and Doubleline Core 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 Equity with a short position of Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Equity and Doubleline Core.
Diversification Opportunities for Franklin Equity and Doubleline Core
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Doubleline is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Equity Income and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed and Franklin Equity 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 Equity Income are associated (or correlated) with Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Core Fixed has no effect on the direction of Franklin Equity i.e., Franklin Equity and Doubleline Core go up and down completely randomly.
Pair Corralation between Franklin Equity and Doubleline Core
Assuming the 90 days horizon Franklin Equity Income is expected to generate 2.02 times more return on investment than Doubleline Core. However, Franklin Equity is 2.02 times more volatile than Doubleline Core Fixed. It trades about 0.29 of its potential returns per unit of risk. Doubleline Core Fixed is currently generating about 0.16 per unit of risk. If you would invest 3,166 in Franklin Equity Income on June 3, 2025 and sell it today you would earn a total of 310.00 from holding Franklin Equity Income or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Equity Income vs. Doubleline Core Fixed
Performance |
| Timeline |
| Franklin Equity Income |
| Doubleline Core Fixed |
Franklin Equity and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Equity and Doubleline Core
The main advantage of trading using opposite Franklin Equity and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Equity position performs unexpectedly, Doubleline Core 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 Doubleline Core will offset losses from the drop in Doubleline Core's long position.| Franklin Equity vs. Franklin Mutual Beacon | Franklin Equity vs. Templeton Developing Markets | Franklin Equity vs. Franklin Mutual Global | Franklin Equity vs. Franklin Mutual Global |
| Doubleline Core vs. Osterweis Strategic Income | Doubleline Core vs. Metropolitan West Total | Doubleline Core vs. Doubleline Low Duration | Doubleline Core vs. Akre Focus Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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