Correlation Between Franklin Templeton and Simplify Exchange
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Simplify Exchange 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 Simplify Exchange 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 Simplify Exchange Traded, you can compare the effects of market volatilities on Franklin Templeton and Simplify Exchange 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 Simplify Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Simplify Exchange.
Diversification Opportunities for Franklin Templeton and Simplify Exchange
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Simplify is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Simplify Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Exchange Traded 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 Simplify Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Exchange Traded has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Simplify Exchange go up and down completely randomly.
Pair Corralation between Franklin Templeton and Simplify Exchange
Given the investment horizon of 90 days Franklin Templeton is expected to generate 1.19 times less return on investment than Simplify Exchange. In addition to that, Franklin Templeton is 1.14 times more volatile than Simplify Exchange Traded. It trades about 0.08 of its total potential returns per unit of risk. Simplify Exchange Traded is currently generating about 0.11 per unit of volatility. If you would invest 2,509 in Simplify Exchange Traded on September 12, 2024 and sell it today you would earn a total of 450.20 from holding Simplify Exchange Traded or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.21% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Simplify Exchange Traded
Performance |
| Timeline |
| Franklin Templeton ETF |
| Simplify Exchange Traded |
Franklin Templeton and Simplify Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Simplify Exchange
The main advantage of trading using opposite Franklin Templeton and Simplify Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Simplify Exchange 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 Simplify Exchange will offset losses from the drop in Simplify Exchange's long position.| Franklin Templeton vs. Franklin Core Dividend | Franklin Templeton vs. Franklin International Core | Franklin Templeton vs. WisdomTree Trust | Franklin Templeton vs. First Trust Exchange Traded |
| Simplify Exchange vs. Freedom Day Dividend | Simplify Exchange vs. Franklin Templeton ETF | Simplify Exchange vs. iShares MSCI China | Simplify Exchange vs. Tidal Trust II |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |