Correlation Between Franklin Mutual and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Growth Allocation 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 Growth Allocation 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 Growth Allocation Fund, you can compare the effects of market volatilities on Franklin Mutual and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Growth Allocation.
Diversification Opportunities for Franklin Mutual and Growth Allocation
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Growth is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Growth Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Growth Allocation go up and down completely randomly.
Pair Corralation between Franklin Mutual and Growth Allocation
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 0.77 times more return on investment than Growth Allocation. However, Franklin Mutual Global is 1.3 times less risky than Growth Allocation. It trades about 0.12 of its potential returns per unit of risk. Growth Allocation Fund is currently generating about -0.06 per unit of risk. If you would invest 3,142 in Franklin Mutual Global on September 13, 2025 and sell it today you would earn a total of 179.00 from holding Franklin Mutual Global or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Growth Allocation Fund
Performance |
| Timeline |
| Franklin Mutual Global |
| Growth Allocation |
Franklin Mutual and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Growth Allocation
The main advantage of trading using opposite Franklin Mutual and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Franklin Mutual vs. Small Cap Value Profund | Franklin Mutual vs. Omni Small Cap Value | Franklin Mutual vs. Royce Special Equity | Franklin Mutual vs. Fidelity Small Cap |
| Growth Allocation vs. Us Government Securities | Growth Allocation vs. Blackrock Government Bond | Growth Allocation vs. Dunham Porategovernment Bond | Growth Allocation vs. Franklin Adjustable Government |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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