Correlation Between Franklin Templeton and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman ETF, you can compare the effects of market volatilities on Franklin Templeton and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Neuberger Berman.
Diversification Opportunities for Franklin Templeton and Neuberger Berman
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Franklin and Neuberger is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Neuberger Berman ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman ETF 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman ETF has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Neuberger Berman go up and down completely randomly.
Pair Corralation between Franklin Templeton and Neuberger Berman
Given the investment horizon of 90 days Franklin Templeton ETF is expected to generate 1.93 times more return on investment than Neuberger Berman. However, Franklin Templeton is 1.93 times more volatile than Neuberger Berman ETF. It trades about 0.06 of its potential returns per unit of risk. Neuberger Berman ETF is currently generating about 0.11 per unit of risk. If you would invest 2,085 in Franklin Templeton ETF on August 30, 2024 and sell it today you would earn a total of 599.00 from holding Franklin Templeton ETF or generate 28.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.83% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Neuberger Berman ETF
Performance |
| Timeline |
| Franklin Templeton ETF |
| Neuberger Berman ETF |
Franklin Templeton and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Neuberger Berman
The main advantage of trading using opposite Franklin Templeton and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman'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 |
| Neuberger Berman vs. Freedom Day Dividend | Neuberger Berman vs. Franklin Templeton ETF | Neuberger Berman vs. iShares MSCI China | Neuberger Berman 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |