Correlation Between Franklin Small-mid and Clearbridge International
Can any of the company-specific risk be diversified away by investing in both Franklin Small-mid and Clearbridge International 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 Small-mid and Clearbridge International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Small Mid Cap and Clearbridge International Value, you can compare the effects of market volatilities on Franklin Small-mid and Clearbridge International 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 Small-mid with a short position of Clearbridge International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Small-mid and Clearbridge International.
Diversification Opportunities for Franklin Small-mid and Clearbridge International
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Clearbridge is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap and Clearbridge International Valu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge International and Franklin Small-mid 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 Small Mid Cap are associated (or correlated) with Clearbridge International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge International has no effect on the direction of Franklin Small-mid i.e., Franklin Small-mid and Clearbridge International go up and down completely randomly.
Pair Corralation between Franklin Small-mid and Clearbridge International
Assuming the 90 days horizon Franklin Small-mid is expected to generate 1.3 times less return on investment than Clearbridge International. In addition to that, Franklin Small-mid is 1.0 times more volatile than Clearbridge International Value. It trades about 0.07 of its total potential returns per unit of risk. Clearbridge International Value is currently generating about 0.1 per unit of volatility. If you would invest 1,212 in Clearbridge International Value on June 5, 2025 and sell it today you would earn a total of 60.00 from holding Clearbridge International Value or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Small Mid Cap vs. Clearbridge International Valu
Performance |
| Timeline |
| Franklin Small Mid |
| Clearbridge International |
Franklin Small-mid and Clearbridge International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Small-mid and Clearbridge International
The main advantage of trading using opposite Franklin Small-mid and Clearbridge International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Small-mid position performs unexpectedly, Clearbridge International 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 Clearbridge International will offset losses from the drop in Clearbridge International's long position.| Franklin Small-mid vs. Ab Value Fund | Franklin Small-mid vs. Rbc Microcap Value | Franklin Small-mid vs. Fdzbpx | Franklin Small-mid vs. Abr 7525 Volatility |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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