Franklin Equity Income Fund Volatility

FREIX Fund  USD 33.02  -0.47  -1.40%   
Recent trading patterns suggest Franklin Equity Income maintains very low price volatility over the last 3 months. Franklin Equity Income indicates a Sharpe ratio of -0.0251, showing negative reward per unit of risk over the last 3 months. The current setup includes 27 technical indicators relevant to risk behavior.

Sharpe Ratio = -0.0251

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Good Returns
Average Returns
Small Returns
CashSmall RiskAverage RiskHigh RiskHuge Risk
Negative ReturnsFREIX
Franklin Equity Income's financial profile includes a Market Risk Adjusted Performance of 0.1%, a Risk of 0.67, and a Risk Adjusted Performance of 0.1%. Moving average data indicates Franklin Equity is not operating at maximum efficiency. A well-diversified portfolio allocation can reduce market risk and improve total performance.
Key indicators related to Franklin Equity's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Volatility analysis for Franklin Equity draws on both historical price data and forward-looking implied volatility from the options market. Together these measures provide a comprehensive view of Franklin Equity's risk profile.
  

Volatility Strategy

Observed trading dispersion in Franklin Equity Income can affect long-term allocation structure. Current statistical measures show total volatility near 0.67% with a beta coefficient of 0.85, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.0251, evaluates return per unit of total risk. An alpha value of 0.2 reflects performance relative to systematic market exposure. Expected return estimates near -0.0167% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Volatility effects depend on underlying market structure and exposure characteristics.

Main indicators related to Franklin Equity's market risk premium analysis include:

 Beta
0.85
 Alpha
0.2
 Risk
0.67
 Sharpe Ratio
-0.03
 Expected Return
-0.02

Moving together with Franklin Mutual Fund

  0.83PEYAX Putnam Equity IncomePairCorr
  0.76TEBIX Franklin Mutual BeaconPairCorr
  0.83TEDMX Templeton DevelopingPairCorr
  0.7TEDIX Franklin Mutual GlobalPairCorr
  0.69TEDSX Franklin Mutual GlobalPairCorr
  0.7TEDRX Franklin Mutual GlobalPairCorr
  0.83TEFRX Templeton ForeignPairCorr
  0.73TEGBX Templeton Global BondPairCorr
  0.83TEMFX Templeton ForeignPairCorr
  0.68TEMGX Templeton Global SmallerPairCorr
  0.75TEMEX Franklin Mutual BeaconPairCorr
  0.76TEMMX Templeton EmergingPairCorr
  0.74TEMIX Franklin Mutual EuropeanPairCorr
  0.68TEMTX Franklin Mutual SharesPairCorr
  0.76TEMQX Mutual QuestPairCorr
  0.69FQCTX Franklin Necticut TaxPairCorr
  0.94SAIFX Clearbridge Large CapPairCorr
  0.76TEMZX Templeton EmergingPairCorr
  0.63FQCHX Franklin Templeton SmacsPairCorr
  0.74FQEMX Franklin Templeton SmacsPairCorr
  0.76TEQIX Franklin Mutual QuestPairCorr
  0.61TEPLX Templeton GrowthPairCorr
  0.89TWDAX Templeton WorldPairCorr
  0.88TESIX Franklin Mutual SharesPairCorr
  0.67TESGX Templeton Global SmallerPairCorr
  0.88TESRX Franklin Mutual SharesPairCorr
  0.66LGGAX Clearbridge InternationalPairCorr

Sensitivity To Market

Franklin Equity systematic risk exposure is reflected in a beta value of 0.85. Beta is derived from regression analysis comparing asset and benchmark returns. Measured volatility currently stands near 0.67%.Over the current lookback period, Franklin Equity Income shows a very low volatility profile, using downside deviation (0.79%) as a primary reference. Funds with more equity exposure typically show higher volatility than more bond-heavy funds.
Check current 90 days Franklin Equity correlation with market (Dow Jones Industrial)
α0.20   β0.85
3 Months Beta |Analyze Franklin Equity Income Demand Trend
Check current 90 days Franklin Equity correlation with market (Dow Jones Industrial)

Downside Risk

Standard deviation for Franklin expresses the daily price volatility over a selected time horizon as a spread around the mean. High values indicate volatile instruments; low values indicate stable ones.
Standard Deviation
    
  0.67  
For Franklin Equity investors, the distinction between upside and downside risk matters. Standard deviation measures total volatility including favorable moves, while downside deviation and semi-deviation isolate the loss risk in Franklin Equity's daily returns. Franklin Equity Income's financial profile includes a Downside Deviation of 0.79, a Downside Variance of 0.62, and a Maximum Drawdown of 11.53.

Mutual Fund Volatility Analysis

Volatility describes the degree to which Franklin Equity mutual fund price fluctuates in either direction. Highly volatile mutual funds like Franklin Equity can offer significant profit opportunities, but also come with heightened risk.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Franklin Equity Income Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Projected Return Density Against Market

Assuming a 90-day horizon Franklin Equity has a beta of 0.851 . This usually indicates Franklin Equity Income market returns are sensitive to returns on the market. As the market goes up or down, Franklin Equity is expected to follow.
Systematic risk links Franklin Equity to overall mutual fund market cycles, while unsystematic risk stems from company or sector-specific developments. Diversification addresses the latter, but macro sensitivity persists. Beta measures relative responsiveness. Franklin Equity Income's financial profile includes a Downside Deviation of 0.79, a Mean Deviation of 0.64, and a Semi Deviation of 0.65.
Franklin Equity Income has an alpha of 0.196, implying that it can generate a 0.196 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Density   
       Returns  
Franklin Equity's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much Franklin Equity's price typically deviates from the mean over a given period.

What Drives Franklin Equity's Price Volatility?

Several factors can influence Franklin Equity's market volatility:

Industry Dynamics

Sector-level events can directly affect Franklin Equity's price stability. Regulatory changes, supply disruptions, or shifts in demand within Franklin Equity's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Franklin Equity.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for Franklin Equity's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Franklin Equity. During periods of economic expansion, Franklin Equity's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

Franklin Equity's Company-Specific Factors

Volatility can also stem from events unique to Franklin Equity. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Franklin Equity's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Franklin Equity's share price.

Mutual Fund Risk Measures

Assuming a 90-day horizon the coefficient of variation of Franklin Equity is -3986.11. The daily returns are distributed with a variance of 0.45 and standard deviation of 0.67. The mean deviation of Franklin Equity Income is currently at 0.51. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α
Alpha over Dow Jones
0.20
β
Beta against Dow Jones0.85
σ
Overall volatility
0.67
Ir
Information ratio 0.15

Mutual Fund Return Volatility

Franklin Equity historical daily return volatility represents how much of Franklin Equity fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund reported 0.6671% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8181% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

LTEFXVESDX
BXDCXVESDX
BXDCXLTEFX
BXDCXSWSFX
LTEFXSWSFX
SWSFXVESDX
  

High negative correlations

RSDIXLTEFX
RSDIXVESDX
RSDIXSWSFX
GTLSXRSDIX
BXDCXRSDIX
QLENXLTEFX

Risk-Adjusted Indicators

There is a big difference between Franklin Mutual Fund performing well and Franklin Equity Mutual Fund doing well as a business compared to the competition. Risk-adjusted metrics allow investors to compare Franklin Equity's efficiency and downside exposure against peers in a more meaningful way. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for Franklin Equity reflects NAV dispersion and exposure stability across disclosure periods. Range expansion increases sensitivity to market stress conditions.

Inputs for Franklin Equity Income come from fund disclosures and market reference feeds and are mapped into a consistent schema for analysis. Some fields can appear with publication lag. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Michael Smolkin - Member of Macroaxis Board of Directors
Last reviewed on March 16th, 2026

Franklin Equity Investment Opportunity

Recent data suggests that Dow Jones Industrial is meaningfully more volatile than Franklin Equity Income, by roughly a 1.22x factor. The lower-risk profile may improve diversification efficiency, but it still needs to be judged against return quality and market sensitivity.You can use Franklin Equity Income to protect your portfolios against small market fluctuations. This directional read frames the latest price swing through a simple momentum and follow-through lens. It is most useful when combined with broader risk controls and position-sizing discipline. a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Franklin Equity to be traded at $32.03 in 90 days.
Very weak diversification
Across the chosen horizon, FREIX and DJI show a correlation of 0.51 and fall into the Very weak diversification bucket. The overlap area represents the portion of risk that may be diversified away when both instruments are held together and nothing else in the portfolio changes.

Franklin Equity Additional Risk Indicators

A broader risk-indicator set for Franklin Equity Income can improve buy, hold, hedge, and sell decisions by adding context beyond the most common measures. A disciplined risk review provides context for deciding whether exposure should be maintained, reduced, or offset elsewhere in the portfolio.

Franklin Equity Suggested Diversification Pairs

Pair trading with Franklin Equity can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. Used properly, pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Franklin Equity as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Franklin Equity's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Franklin Equity's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Franklin Equity Income.