Correlation Between Franklin Mutual and Mfs Intrinsic
Can any of the company-specific risk be diversified away by investing in both Franklin Mutual and Mfs Intrinsic 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 Mutual and Mfs Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Mutual Global and Mfs Intrinsic Value, you can compare the effects of market volatilities on Franklin Mutual and Mfs Intrinsic 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 Mutual with a short position of Mfs Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Mutual and Mfs Intrinsic.
Diversification Opportunities for Franklin Mutual and Mfs Intrinsic
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Mfs is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Mutual Global and Mfs Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intrinsic Value and Franklin Mutual 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 Mutual Global are associated (or correlated) with Mfs Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intrinsic Value has no effect on the direction of Franklin Mutual i.e., Franklin Mutual and Mfs Intrinsic go up and down completely randomly.
Pair Corralation between Franklin Mutual and Mfs Intrinsic
Assuming the 90 days horizon Franklin Mutual is expected to generate 3.74 times less return on investment than Mfs Intrinsic. But when comparing it to its historical volatility, Franklin Mutual Global is 1.13 times less risky than Mfs Intrinsic. It trades about 0.07 of its potential returns per unit of risk. Mfs Intrinsic Value is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,171 in Mfs Intrinsic Value on September 6, 2024 and sell it today you would earn a total of 118.00 from holding Mfs Intrinsic Value or generate 10.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Franklin Mutual Global vs. Mfs Intrinsic Value
Performance |
Timeline |
Franklin Mutual Global |
Mfs Intrinsic Value |
Franklin Mutual and Mfs Intrinsic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Mutual and Mfs Intrinsic
The main advantage of trading using opposite Franklin Mutual and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Mutual position performs unexpectedly, Mfs Intrinsic 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 Mfs Intrinsic will offset losses from the drop in Mfs Intrinsic's long position.Franklin Mutual vs. Scharf Global Opportunity | Franklin Mutual vs. Federated Mdt Large | Franklin Mutual vs. Nationwide Global Equity | Franklin Mutual vs. T Rowe Price |
Mfs Intrinsic vs. Jpmorgan Emerging Markets | Mfs Intrinsic vs. Ep Emerging Markets | Mfs Intrinsic vs. T Rowe Price | Mfs Intrinsic vs. Shelton Emerging Markets |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |