Correlation Between Franklin Mutual and Legg Mason
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Legg Mason 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 Legg Mason into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual European and Legg Mason Bw, you can compare the effects of market volatilities on Franklin Mutual and Legg Mason 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 Legg Mason. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Legg Mason.
Diversification Opportunities for Franklin Mutual and Legg Mason
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Legg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual European and Legg Mason Bw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legg Mason Bw 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 European are associated (or correlated) with Legg Mason. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legg Mason Bw has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Legg Mason go up and down completely randomly.
Pair Corralation between Franklin Mutual and Legg Mason
If you would invest 2,699 in Franklin Mutual European on March 28, 2025 and sell it today you would earn a total of 167.00 from holding Franklin Mutual European or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.64% |
| Values | Daily Returns |
Franklin Mutual European vs. Legg Mason Bw
Performance |
| Timeline |
| Franklin Mutual European |
| Legg Mason Bw |
Risk-Adjusted Performance
Good
Weak | Strong |
Franklin Mutual and Legg Mason Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Mutual and Legg Mason
The main advantage of trading using opposite Franklin Mutual and Legg Mason positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Legg Mason 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 Legg Mason will offset losses from the drop in Legg Mason's long position.| Franklin Mutual vs. Qs Small Capitalization | Franklin Mutual vs. Rbb Fund | Franklin Mutual vs. Growth Portfolio Class | Franklin Mutual vs. Rational Dividend Capture |
| Legg Mason vs. Putnam Global Financials | Legg Mason vs. Financials Ultrasector Profund | Legg Mason vs. Mesirow Financial Small | Legg Mason vs. Fidelity Advisor Financial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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