Correlation Between Mackenzie Global and Franklin Global

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

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

Diversification Opportunities for Mackenzie Global and Franklin Global

0.0

Correlation Coefficient

Mackenzie Global  Franklin Global

Pay attention - limited upside

The 3 months correlation between Mackenzie and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mackenzie Global Sustainable and Franklin Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Global Dividend and Mackenzie 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 Mackenzie Global Sustainable are associated (or correlated) with Franklin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Global Dividend has no effect on the direction of Mackenzie Global i.e., Mackenzie Global and Franklin Global go up and down completely randomly.

Pair Corralation between Mackenzie Global and Franklin Global

If you would invest  0.00  in Franklin Global Dividend on March 5, 2024 and sell it today you would earn a total of  0.00  from holding Franklin Global Dividend or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mackenzie Global Sustainable  vs.  Franklin Global Dividend

Mackenzie Global Sus

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Mackenzie Global Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Mackenzie Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Franklin Global Dividend

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Franklin Global Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Franklin Global is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mackenzie Global and Franklin Global

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

The idea behind Mackenzie Global Sustainable and Franklin Global Dividend 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..