Correlation Between Mairs Power and Franklin International
Can any of the company-specific risk be diversified away by investing in both Mairs Power and Franklin 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 Mairs Power and Franklin International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Balanced and Franklin International Growth, you can compare the effects of market volatilities on Mairs Power and Franklin 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 Mairs Power with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Franklin International.
Diversification Opportunities for Mairs Power and Franklin International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mairs and Franklin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Balanced and Franklin International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International and Mairs Power 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 Mairs Power Balanced are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Mairs Power i.e., Mairs Power and Franklin International go up and down completely randomly.
Pair Corralation between Mairs Power and Franklin International
Assuming the 90 days horizon Mairs Power Balanced is expected to generate 0.5 times more return on investment than Franklin International. However, Mairs Power Balanced is 2.0 times less risky than Franklin International. It trades about 0.0 of its potential returns per unit of risk. Franklin International Growth is currently generating about -0.01 per unit of risk. If you would invest 11,339 in Mairs Power Balanced on September 10, 2025 and sell it today you would lose (9.00) from holding Mairs Power Balanced or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Balanced vs. Franklin International Growth
Performance |
| Timeline |
| Mairs Power Balanced |
| Franklin International |
Mairs Power and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Franklin International
The main advantage of trading using opposite Mairs Power and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power position performs unexpectedly, Franklin 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 Franklin International will offset losses from the drop in Franklin International's long position.| Mairs Power vs. Blackrock Lg Cap | Mairs Power vs. Simt Tax Managed Managed | Mairs Power vs. Simt Tax Managed Managed | Mairs Power vs. Applied Finance Select |
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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