Correlation Between Franklin Mutual and Calvert Moderate
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Calvert Moderate 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 Franklin Mutual and Calvert Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Calvert Moderate Allocation, you can compare the effects of market volatilities on Franklin Mutual and Calvert Moderate 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 Franklin Mutual with a short position of Calvert Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Calvert Moderate.
Diversification Opportunities for Franklin Mutual and Calvert Moderate
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Franklin and Calvert is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Calvert Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Moderate All and Franklin Mutual 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 Franklin Mutual Global are associated (or correlated) with Calvert Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Moderate All has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Calvert Moderate go up and down completely randomly.
Pair Corralation between Franklin Mutual and Calvert Moderate
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 1.5 times more return on investment than Calvert Moderate. However, Franklin Mutual is 1.5 times more volatile than Calvert Moderate Allocation. It trades about 0.17 of its potential returns per unit of risk. Calvert Moderate Allocation is currently generating about 0.08 per unit of risk. If you would invest 3,162 in Franklin Mutual Global on May 29, 2025 and sell it today you would earn a total of 84.00 from holding Franklin Mutual Global or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Calvert Moderate Allocation
Performance |
| Timeline |
| Franklin Mutual Global |
| Calvert Moderate All |
Franklin Mutual and Calvert Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Calvert Moderate
The main advantage of trading using opposite Franklin Mutual and Calvert Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Calvert Moderate 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 Calvert Moderate will offset losses from the drop in Calvert Moderate's long position.| Franklin Mutual vs. Elfun Diversified Fund | Franklin Mutual vs. Madison Diversified Income | Franklin Mutual vs. Pgim Conservative Retirement | Franklin Mutual vs. Victory Diversified Stock |
| Calvert Moderate vs. Dunham High Yield | Calvert Moderate vs. Payden High Income | Calvert Moderate vs. Janus High Yield Fund | Calvert Moderate vs. Siit High Yield |
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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