Correlation Between Franklin Mutual and Clearbridge Dividend
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Clearbridge Dividend 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 Clearbridge Dividend 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 Clearbridge Dividend Strategy, you can compare the effects of market volatilities on Franklin Mutual and Clearbridge Dividend 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 Clearbridge Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Clearbridge Dividend.
Diversification Opportunities for Franklin Mutual and Clearbridge Dividend
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and CLEARBRIDGE is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Clearbridge Dividend Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Dividend 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 Clearbridge Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Dividend has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Clearbridge Dividend go up and down completely randomly.
Pair Corralation between Franklin Mutual and Clearbridge Dividend
Assuming the 90 days horizon Franklin Mutual Global is expected to generate 1.29 times more return on investment than Clearbridge Dividend. However, Franklin Mutual is 1.29 times more volatile than Clearbridge Dividend Strategy. It trades about 0.08 of its potential returns per unit of risk. Clearbridge Dividend Strategy is currently generating about 0.02 per unit of risk. If you would invest 2,537 in Franklin Mutual Global on August 22, 2025 and sell it today you would earn a total of 633.00 from holding Franklin Mutual Global or generate 24.95% 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. Clearbridge Dividend Strategy
Performance |
| Timeline |
| Franklin Mutual Global |
| Clearbridge Dividend |
Franklin Mutual and Clearbridge Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Clearbridge Dividend
The main advantage of trading using opposite Franklin Mutual and Clearbridge Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Clearbridge Dividend 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 Clearbridge Dividend will offset losses from the drop in Clearbridge Dividend's long position.| Franklin Mutual vs. Cornerstone Moderately Aggressive | Franklin Mutual vs. American Funds Retirement | Franklin Mutual vs. Qs Moderate Growth | Franklin Mutual vs. College Retirement Equities |
| Clearbridge Dividend vs. T Rowe Price | Clearbridge Dividend vs. T Rowe Price | Clearbridge Dividend vs. Ab Large Cap | Clearbridge Dividend vs. Tiaa Cref Large Cap Value |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |