Correlation Between Hartford Emerging and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Hartford Emerging and Franklin Emerging 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 Hartford Emerging and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Emerging Markets and Franklin Emerging Market, you can compare the effects of market volatilities on Hartford Emerging and Franklin Emerging 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 Hartford Emerging with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and Franklin Emerging.
Diversification Opportunities for Hartford Emerging and Franklin Emerging
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HARTFORD and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Emerging Markets and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Hartford 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 Hartford Emerging Markets are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Hartford Emerging i.e., Hartford Emerging and Franklin Emerging go up and down completely randomly.
Pair Corralation between Hartford Emerging and Franklin Emerging
Assuming the 90 days horizon Hartford Emerging Markets is expected to generate 3.97 times more return on investment than Franklin Emerging. However, Hartford Emerging is 3.97 times more volatile than Franklin Emerging Market. It trades about 0.16 of its potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.46 per unit of risk. If you would invest 1,126 in Hartford Emerging Markets on June 7, 2025 and sell it today you would earn a total of 83.00 from holding Hartford Emerging Markets or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Hartford Emerging Markets vs. Franklin Emerging Market
Performance |
| Timeline |
| Hartford Emerging Markets |
| Franklin Emerging Market |
Hartford Emerging and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Emerging and Franklin Emerging
The main advantage of trading using opposite Hartford Emerging and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Emerging position performs unexpectedly, Franklin Emerging 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 Franklin Emerging will offset losses from the drop in Franklin Emerging's long position.| Hartford Emerging vs. Fpa Queens Road | Hartford Emerging vs. Small Cap Value Fund | Hartford Emerging vs. American Century Etf | Hartford Emerging vs. Fidelity Small Cap |
| Franklin Emerging vs. Franklin Mutual Beacon | Franklin Emerging vs. Templeton Developing Markets | Franklin Emerging vs. Franklin Mutual Global | Franklin Emerging vs. Franklin Mutual Global |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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