Correlation Between Sa Emerging and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Sa 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 Sa 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 Sa Emerging Markets and Franklin Emerging Market, you can compare the effects of market volatilities on Sa 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 Sa Emerging with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sa Emerging and Franklin Emerging.
Diversification Opportunities for Sa Emerging and Franklin Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SAEMX and Franklin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Sa 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 Sa 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 Sa 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 Sa Emerging i.e., Sa Emerging and Franklin Emerging go up and down completely randomly.
Pair Corralation between Sa Emerging and Franklin Emerging
Assuming the 90 days horizon Sa Emerging Markets is expected to generate 2.95 times more return on investment than Franklin Emerging. However, Sa Emerging is 2.95 times more volatile than Franklin Emerging Market. It trades about 0.39 of its potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.41 per unit of risk. If you would invest 1,004 in Sa Emerging Markets on April 24, 2025 and sell it today you would earn a total of 174.00 from holding Sa Emerging Markets or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sa Emerging Markets vs. Franklin Emerging Market
Performance |
| Timeline |
| Sa Emerging Markets |
| Franklin Emerging Market |
Sa Emerging and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sa Emerging and Franklin Emerging
The main advantage of trading using opposite Sa Emerging and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa 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.| Sa Emerging vs. Blackrock Government Bond | Sa Emerging vs. Morgan Stanley Institutional | Sa Emerging vs. Legg Mason Partners | Sa Emerging vs. Dunham Porategovernment Bond |
| Franklin Emerging vs. Thomas White Emerging | Franklin Emerging vs. Ep Emerging Markets | Franklin Emerging vs. Balanced Strategy Fund | Franklin Emerging vs. Rbc Bluebay Emerging |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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