Correlation Between Franklin International and Franklin International

Can any of the company-specific risk be diversified away by investing in both Franklin International and Franklin International 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 International and Franklin International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Franklin International Low and Franklin International Core, you can compare the effects of market volatilities on Franklin International and Franklin International 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 International with a short position of Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin International and Franklin International.

Diversification Opportunities for Franklin International and Franklin International

0.82

Correlation Coefficient

Franklin International  Franklin International

Very poor diversification

The 3 months correlation between Franklin and Franklin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Franklin International Low and Franklin International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International and Franklin International 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 International Low are associated (or correlated) with Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Franklin International i.e., Franklin International and Franklin International go up and down completely randomly.

Pair Corralation between Franklin International and Franklin International

Given the investment horizon of 90 days Franklin International is expected to generate 1.18 times less return on investment than Franklin International. But when comparing it to its historical volatility, Franklin International Low is 1.41 times less risky than Franklin International. It trades about 0.14 of its potential returns per unit of risk. Franklin International Core is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,353  in Franklin International Core on May 7, 2025 and sell it today you would earn a total of  194.00  from holding Franklin International Core or generate 5.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Franklin International Low  vs.  Franklin International Core

Franklin International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin International Low are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Franklin International is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Franklin International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin International Core are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Franklin International is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Franklin International and Franklin International

The main advantage of trading using opposite Franklin International and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin International position performs unexpectedly, Franklin International 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 International will offset losses from the drop in Franklin International's long position.

The idea behind Franklin International Low and Franklin International Core pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.