Franklin Lifesmart Correlations

FLOLX Fund

USD 14.66 0.06 0.41%

The current 90-days correlation between Franklin Lifesmart 2040 and Short Oil Gas is -0.08 (i.e., Good diversification). The correlation of Franklin Lifesmart is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Franklin Lifesmart Correlation With Market

Poor diversification

The correlation between Franklin Lifesmart 2040 and DJI is 0.63 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart 2040 and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Franklin Lifesmart 2040. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Moving together with Franklin Mutual Fund

0.92	TEMWX	Templeton World	Pair Corr
0.62	TEMQX	Mutual Quest	Pair Corr
0.64	TEQIX	Franklin Mutual Quest	Pair Corr
0.91	TWDAX	Templeton World	Pair Corr
0.92	TEWTX	Templeton World	Pair Corr
0.64	SASMX	Clearbridge Small Cap	Pair Corr

Moving against Franklin Mutual Fund

0.32

TEGBX

Templeton Global Bond

Pair Corr

Related Correlations Analysis

	SNPIX	XEMOX	ALEFX	CGAEX	GRHAX	ENPSX
SNPIX		-0.54	-0.83	0.27	-0.69	-0.92	SNPIX
XEMOX	-0.54		0.82	-0.76	0.31	0.67	XEMOX
ALEFX	-0.83	0.82		-0.62	0.61	0.86	ALEFX
CGAEX	0.27	-0.76	-0.62		-0.01	-0.38	CGAEX
GRHAX	-0.69	0.31	0.61	-0.01		0.64	GRHAX
ENPSX	-0.92	0.67	0.86	-0.38	0.64		ENPSX
	SNPIX	XEMOX	ALEFX	CGAEX	GRHAX	ENPSX

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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

ENPSX	+ 0.86	ALEFX
ALEFX	+ 0.82	XEMOX
ENPSX	+ 0.67	XEMOX
ENPSX	+ 0.64	GRHAX
GRHAX	+ 0.61	ALEFX
GRHAX	+ 0.31	XEMOX

High negative correlations

ENPSX	- 0.92	SNPIX
ALEFX	- 0.83	SNPIX
CGAEX	- 0.76	XEMOX
GRHAX	- 0.69	SNPIX
CGAEX	- 0.62	ALEFX
XEMOX	- 0.54	SNPIX

Risk-Adjusted Indicators

There is a big difference between Franklin Mutual Fund performing well and Franklin Lifesmart Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Franklin Lifesmart's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
SNPIX	0.88	0.07	0.04	(0.10)	1.06	(1.01)	2.34	(1.71)	6.81
XEMOX	0.79	0.09	0.06	0.39	0.98	(0.84)	1.81	(1.58)	6.88
ALEFX	0.86	(0.01)	(0.01)	(0.01)	1.64	(0.82)	1.37	(2.29)	9.49
CGAEX	0.70	(0.13)	0.00	(0.34)	0.00	0.00	1.15	(1.47)	4.70
GRHAX	1.17	(0.08)	0.00	(0.07)	0.00	0.00	2.36	(2.02)	8.49
ENPSX	1.31	(0.01)	(0.01)	0.00	1.85	(1.32)	2.58	(3.32)	9.31

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