Correlation Between Franklin Mutual and Mfs Lifetime
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Mfs Lifetime 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 Mfs Lifetime 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 Mfs Lifetime 2065, you can compare the effects of market volatilities on Franklin Mutual and Mfs Lifetime 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 Mfs Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Mfs Lifetime.
Diversification Opportunities for Franklin Mutual and Mfs Lifetime
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Mfs is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Mfs Lifetime 2065 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Lifetime 2065 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 Mfs Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Lifetime 2065 has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Mfs Lifetime go up and down completely randomly.
Pair Corralation between Franklin Mutual and Mfs Lifetime
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 1.1 times more return on investment than Mfs Lifetime. However, Franklin Mutual is 1.1 times more volatile than Mfs Lifetime 2065. It trades about 0.09 of its potential returns per unit of risk. Mfs Lifetime 2065 is currently generating about 0.04 per unit of risk. If you would invest 3,105 in Franklin Mutual Global on August 20, 2025 and sell it today you would earn a total of 114.00 from holding Franklin Mutual Global or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Mfs Lifetime 2065
Performance |
| Timeline |
| Franklin Mutual Global |
| Mfs Lifetime 2065 |
Franklin Mutual and Mfs Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Mfs Lifetime
The main advantage of trading using opposite Franklin Mutual and Mfs Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Mfs Lifetime 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 Mfs Lifetime will offset losses from the drop in Mfs Lifetime's long position.| Franklin Mutual vs. Intermediate Term Bond Fund | Franklin Mutual vs. Flexible Bond Portfolio | Franklin Mutual vs. Ultra Short Fixed Income | Franklin Mutual vs. Dreyfusstandish Global Fixed |
| Mfs Lifetime vs. Calvert Large Cap | Mfs Lifetime vs. Transamerica Large Cap | Mfs Lifetime vs. Qs Large Cap | Mfs Lifetime vs. Neiman Large Cap |
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 CEOs Directory module to screen CEOs from public companies around the world.
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