Correlation Between Franklin Mutual and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Mutual Of 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 Mutual Of 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 Mutual Of America, you can compare the effects of market volatilities on Franklin Mutual and Mutual Of 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 Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Mutual Of.
Diversification Opportunities for Franklin Mutual and Mutual Of
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Mutual is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America 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 Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Mutual Of go up and down completely randomly.
Pair Corralation between Franklin Mutual and Mutual Of
Assuming the 90 days horizon Franklin Mutual is expected to generate 1.13 times less return on investment than Mutual Of. In addition to that, Franklin Mutual is 2.44 times more volatile than Mutual Of America. It trades about 0.1 of its total potential returns per unit of risk. Mutual Of America is currently generating about 0.27 per unit of volatility. If you would invest 1,163 in Mutual Of America on June 8, 2025 and sell it today you would earn a total of 57.00 from holding Mutual Of America or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Mutual Global vs. Mutual Of America
Performance |
| Timeline |
| Franklin Mutual Global |
| Mutual Of America |
Franklin Mutual and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Mutual Of
The main advantage of trading using opposite Franklin Mutual and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Franklin Mutual vs. Dreyfus Natural Resources | Franklin Mutual vs. Goehring Rozencwajg Resources | Franklin Mutual vs. World Energy Fund | Franklin Mutual vs. Blackrock All Cap Energy |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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