Correlation Between Mfs New and Franklin Corefolio
Can any of the company-specific risk be diversified away by investing in both Mfs New and Franklin Corefolio 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 Mfs New and Franklin Corefolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs New Discovery and Franklin Efolio Allocation, you can compare the effects of market volatilities on Mfs New and Franklin Corefolio 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 Mfs New with a short position of Franklin Corefolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs New and Franklin Corefolio.
Diversification Opportunities for Mfs New and Franklin Corefolio
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mfs and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mfs New Discovery and Franklin Efolio Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Efolio Allo and Mfs New 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 Mfs New Discovery are associated (or correlated) with Franklin Corefolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Efolio Allo has no effect on the direction of Mfs New i.e., Mfs New and Franklin Corefolio go up and down completely randomly.
Pair Corralation between Mfs New and Franklin Corefolio
Assuming the 90 days horizon Mfs New Discovery is expected to generate 1.65 times more return on investment than Franklin Corefolio. However, Mfs New is 1.65 times more volatile than Franklin Efolio Allocation. It trades about 0.11 of its potential returns per unit of risk. Franklin Efolio Allocation is currently generating about 0.09 per unit of risk. If you would invest 2,552 in Mfs New Discovery on August 9, 2025 and sell it today you would earn a total of 191.00 from holding Mfs New Discovery or generate 7.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs New Discovery vs. Franklin Efolio Allocation
Performance |
| Timeline |
| Mfs New Discovery |
| Franklin Efolio Allo |
Mfs New and Franklin Corefolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs New and Franklin Corefolio
The main advantage of trading using opposite Mfs New and Franklin Corefolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs New position performs unexpectedly, Franklin Corefolio 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 Corefolio will offset losses from the drop in Franklin Corefolio's long position.| Mfs New vs. Muirfield Fund Retail | Mfs New vs. Icm Small Pany | Mfs New vs. Queens Road Small | Mfs New vs. Small Cap Equity |
| Franklin Corefolio vs. Franklin Efolio Allocation | Franklin Corefolio vs. Schwab Target 2060 | Franklin Corefolio vs. Muirfield Fund Retail | Franklin Corefolio vs. Brown Advisory Flexible |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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