Franklin Lifesmart Correlations

FLERX Fund  USD 14.44  0.03  0.21%   
The current 90-days correlation between Franklin Lifesmart 2030 and Balanced Allocation Fund is 0.22 (i.e., Modest 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

Very weak diversification

The correlation between Franklin Lifesmart 2030 and DJI is 0.43 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart 2030 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 2030. 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 metropolitan statistical area.

Moving together with Franklin Mutual Fund

  0.69TEBIX Franklin Mutual BeaconPairCorr
  0.78TEGRX Templeton GrowthPairCorr
  0.77TEMGX Templeton Global SmallerPairCorr
  0.68TEMEX Franklin Mutual BeaconPairCorr
  0.78TEMWX Templeton WorldPairCorr
  0.64TEMTX Franklin Mutual SharesPairCorr
  0.84TEMQX Mutual QuestPairCorr
  0.74FQCTX Franklin Necticut TaxPairCorr
  0.62SAIFX Clearbridge Large CapPairCorr
  0.65SAGYX Clearbridge AggressivePairCorr
  0.61FQCHX Franklin Templeton SmacsPairCorr
  0.85TEQIX Franklin Mutual QuestPairCorr
  0.78TEPLX Templeton GrowthPairCorr
  0.78TWDAX Templeton WorldPairCorr
  0.64TESIX Franklin Mutual SharesPairCorr
  0.76TESGX Templeton Global SmallerPairCorr
  0.64TESRX Franklin Mutual SharesPairCorr
  0.79LGGAX Clearbridge InternationalPairCorr
  0.64LGIEX Qs International EquityPairCorr
  0.74FQLAX Franklin Louisiana TaxPairCorr
  0.76TEWTX Templeton WorldPairCorr
  0.7SAPYX Clearbridge AppreciationPairCorr
  0.76SASMX Clearbridge Small CapPairCorr
  0.75FQNCX Franklin North CarolinaPairCorr
  0.74FQMDX Franklin Maryland TaxPairCorr
  0.75WAARX Western Asset TotalPairCorr

Moving against Franklin Mutual Fund

  0.42WAADX Western Asset SmashPairCorr

Related Correlations Analysis

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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.