Correlation Between Franklin Templeton and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Natixis ETF 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 Templeton and Natixis ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton ETF and Natixis ETF Trust, you can compare the effects of market volatilities on Franklin Templeton and Natixis ETF 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 Templeton with a short position of Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Natixis ETF.
Diversification Opportunities for Franklin Templeton and Natixis ETF
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Natixis is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust and Franklin Templeton 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 Templeton ETF are associated (or correlated) with Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Natixis ETF go up and down completely randomly.
Pair Corralation between Franklin Templeton and Natixis ETF
Given the investment horizon of 90 days Franklin Templeton ETF is expected to under-perform the Natixis ETF. In addition to that, Franklin Templeton is 1.48 times more volatile than Natixis ETF Trust. It trades about -0.05 of its total potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.37 per unit of volatility. If you would invest 5,279 in Natixis ETF Trust on September 1, 2024 and sell it today you would earn a total of 288.00 from holding Natixis ETF Trust or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Natixis ETF Trust
Performance |
| Timeline |
| Franklin Templeton ETF |
| Natixis ETF Trust |
Franklin Templeton and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Natixis ETF
The main advantage of trading using opposite Franklin Templeton and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| Franklin Templeton vs. Xtrackers MSCI Emerging | Franklin Templeton vs. FlexShares Morningstar Emerging | Franklin Templeton vs. First Trust Emerging |
| Natixis ETF vs. Global X SP | Natixis ETF vs. Amplify CWP Enhanced | Natixis ETF vs. JPMorgan Equity Premium |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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