Franklin Small Correlations

FRSGX Fund  USD 40.18  0.34  0.85%   
The current 90-days correlation between Franklin Small Mid and Templeton Foreign Fund is 0.18 (i.e., Average diversification). The correlation of Franklin Small 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 Small Correlation With Market

FranklinDowDiversified AwayFranklinDowDiversified Away100%

Very poor diversification

The correlation between Franklin Small Mid Cap and DJI is 0.83 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Small Mid Cap 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 Small Mid Cap. 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 price.

Moving together with Franklin Mutual Fund

  0.74SASMX Clearbridge Small CapPairCorr

Moving against Franklin Mutual Fund

  0.7TEMMX Templeton EmergingPairCorr
  0.69TEFTX Templeton ForeignPairCorr
  0.69TEGBX Templeton Global BondPairCorr
  0.68TEFRX Templeton ForeignPairCorr
  0.67TEMFX Templeton ForeignPairCorr
  0.65TEDMX Templeton DevelopingPairCorr
  0.57TEMIX Franklin Mutual EuropeanPairCorr
  0.7TEMZX Templeton EmergingPairCorr
  0.64FQEMX Franklin Templeton SmacsPairCorr
  0.6TEURX Franklin Mutual EuropeanPairCorr
  0.42LGIEX Qs International EquityPairCorr
  0.4LGGAX Clearbridge InternationalPairCorr
  0.67TFFAX Templeton ForeignPairCorr
  0.55WABAX Western Asset EPairCorr
  0.48FQTIX Franklin Strategic SeriesPairCorr
  0.46WAFAX Western Asset InflationPairCorr
  0.33TFESX International EquityPairCorr
  0.33TFEQX International EquityPairCorr

Related Correlations Analysis

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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   
TEDMXTEMFX
FRDPXFKGRX
FRDPXFRBSX
FRBSXFKGRX
FRDPXTEMFX
FRDPXTEDMX
  
High negative correlations   
TEDMXFRBSX
TEDMXFKGRX

Risk-Adjusted Indicators

There is a big difference between Franklin Mutual Fund performing well and Franklin Small 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 Small'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.