Correlation Between Catalyst/map Global and Franklin Real

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

By analyzing existing cross correlation between Catalystmap Global Balanced and Franklin Real Estate, you can compare the effects of market volatilities on Catalyst/map Global and Franklin Real 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 Catalyst/map Global with a short position of Franklin Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalyst/map Global and Franklin Real.

Diversification Opportunities for Catalyst/map Global and Franklin Real

0.31

Correlation Coefficient

Catalyst/map Global  Franklin Real

Weak diversification

The 3 months correlation between Catalyst/map and Franklin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Catalystmap Global Balanced and Franklin Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Real Estate and Catalyst/map Global 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 Catalystmap Global Balanced are associated (or correlated) with Franklin Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Real Estate has no effect on the direction of Catalyst/map Global i.e., Catalyst/map Global and Franklin Real go up and down completely randomly.

Pair Corralation between Catalyst/map Global and Franklin Real

Assuming the 90 days horizon Catalystmap Global Balanced is expected to generate 0.36 times more return on investment than Franklin Real. However, Catalystmap Global Balanced is 2.75 times less risky than Franklin Real. It trades about 0.24 of its potential returns per unit of risk. Franklin Real Estate is currently generating about 0.02 per unit of risk. If you would invest  1,173  in Catalystmap Global Balanced on May 14, 2025 and sell it today you would earn a total of  56.00  from holding Catalystmap Global Balanced or generate 4.77% return on investment over 90 days.

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

Catalystmap Global Balanced  vs.  Franklin Real Estate

Catalyst/map Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Catalyst/map Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Franklin Real Estate

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Real Estate are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Franklin Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Catalyst/map Global and Franklin Real

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

The idea behind Catalystmap Global Balanced and Franklin Real Estate 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.