Correlation Between Locorr Strategic and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Locorr Strategic and Franklin Mutual 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 Locorr Strategic and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Strategic Allocation and Franklin Mutual Global, you can compare the effects of market volatilities on Locorr Strategic and Franklin Mutual 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 Locorr Strategic with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Strategic and Franklin Mutual.
Diversification Opportunities for Locorr Strategic and Franklin Mutual
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Locorr and Franklin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Strategic Allocation and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Locorr Strategic 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 Locorr Strategic Allocation are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Locorr Strategic i.e., Locorr Strategic and Franklin Mutual go up and down completely randomly.
Pair Corralation between Locorr Strategic and Franklin Mutual
Assuming the 90 days horizon Locorr Strategic Allocation is expected to generate 0.88 times more return on investment than Franklin Mutual. However, Locorr Strategic Allocation is 1.14 times less risky than Franklin Mutual. It trades about 0.18 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about 0.15 per unit of risk. If you would invest 978.00 in Locorr Strategic Allocation on August 16, 2025 and sell it today you would earn a total of 65.00 from holding Locorr Strategic Allocation or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Strategic Allocation vs. Franklin Mutual Global
Performance |
| Timeline |
| Locorr Strategic All |
| Franklin Mutual Global |
Locorr Strategic and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Strategic and Franklin Mutual
The main advantage of trading using opposite Locorr Strategic and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Strategic position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Locorr Strategic vs. Abr 7525 Volatility | Locorr Strategic vs. Abs Insights Emerging | Locorr Strategic vs. Ab Select Equity | Locorr Strategic vs. Rbb Fund |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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