Correlation Between Pnc Emerging and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Pnc 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 Pnc 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 Pnc Emerging Markets and Franklin Emerging Market, you can compare the effects of market volatilities on Pnc 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 Pnc Emerging with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pnc Emerging and Franklin Emerging.
Diversification Opportunities for Pnc Emerging and Franklin Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pnc and Franklin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pnc 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 Pnc 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 Pnc 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 Pnc Emerging i.e., Pnc Emerging and Franklin Emerging go up and down completely randomly.
Pair Corralation between Pnc Emerging and Franklin Emerging
Assuming the 90 days horizon Pnc Emerging Markets is expected to generate 5.06 times more return on investment than Franklin Emerging. However, Pnc Emerging is 5.06 times more volatile than Franklin Emerging Market. It trades about 0.18 of its potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.5 per unit of risk. If you would invest 1,686 in Pnc Emerging Markets on May 31, 2025 and sell it today you would earn a total of 170.00 from holding Pnc Emerging Markets or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pnc Emerging Markets vs. Franklin Emerging Market
Performance |
| Timeline |
| Pnc Emerging Markets |
| Franklin Emerging Market |
Pnc Emerging and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pnc Emerging and Franklin Emerging
The main advantage of trading using opposite Pnc Emerging and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pnc 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.| Pnc Emerging vs. Federated Emerging Market | Pnc Emerging vs. Federated Mdt All | Pnc Emerging vs. Federated Mdt Balanced | Pnc Emerging vs. Federated Global Allocation |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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