Correlation Between Mutual Quest and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Mutual Quest and Franklin Mutual 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 Mutual Quest and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Quest and Franklin Mutual Shares, you can compare the effects of market volatilities on Mutual Quest and Franklin Mutual 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 Mutual Quest with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Quest and Franklin Mutual.
Diversification Opportunities for Mutual Quest and Franklin Mutual
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mutual and Franklin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Quest and Franklin Mutual Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Shares and Mutual Quest 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 Mutual Quest are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Shares has no effect on the direction of Mutual Quest i.e., Mutual Quest and Franklin Mutual go up and down completely randomly.
Pair Corralation between Mutual Quest and Franklin Mutual
Assuming the 90 days horizon Mutual Quest is expected to generate 0.83 times more return on investment than Franklin Mutual. However, Mutual Quest is 1.2 times less risky than Franklin Mutual. It trades about 0.12 of its potential returns per unit of risk. Franklin Mutual Shares is currently generating about 0.08 per unit of risk. If you would invest 1,491 in Mutual Quest on June 10, 2025 and sell it today you would earn a total of 61.00 from holding Mutual Quest or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Quest vs. Franklin Mutual Shares
Performance |
| Timeline |
| Mutual Quest |
| Franklin Mutual Shares |
Mutual Quest and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Quest and Franklin Mutual
The main advantage of trading using opposite Mutual Quest and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Quest position performs unexpectedly, Franklin Mutual 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 Franklin Mutual will offset losses from the drop in Franklin Mutual's long position.| Mutual Quest vs. Franklin Mutual Beacon | Mutual Quest vs. Templeton Developing Markets | Mutual Quest vs. Franklin Mutual Global | Mutual Quest vs. Franklin Mutual Global |
| Franklin Mutual vs. Templeton Growth Fund | Franklin Mutual vs. Franklin Mutual Global | Franklin Mutual vs. Franklin Rising Dividends | Franklin Mutual vs. Franklin Growth Fund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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