Correlation Between Franklin Templeton and NEOS Nasdaq
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and NEOS Nasdaq 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 NEOS Nasdaq 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 NEOS Nasdaq 100, you can compare the effects of market volatilities on Franklin Templeton and NEOS Nasdaq 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 NEOS Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and NEOS Nasdaq.
Diversification Opportunities for Franklin Templeton and NEOS Nasdaq
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and NEOS is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and NEOS Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEOS Nasdaq 100 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 NEOS Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEOS Nasdaq 100 has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and NEOS Nasdaq go up and down completely randomly.
Pair Corralation between Franklin Templeton and NEOS Nasdaq
Given the investment horizon of 90 days Franklin Templeton is expected to generate 1.67 times less return on investment than NEOS Nasdaq. In addition to that, Franklin Templeton is 1.4 times more volatile than NEOS Nasdaq 100. It trades about 0.1 of its total potential returns per unit of risk. NEOS Nasdaq 100 is currently generating about 0.24 per unit of volatility. If you would invest 5,234 in NEOS Nasdaq 100 on September 13, 2024 and sell it today you would earn a total of 150.00 from holding NEOS Nasdaq 100 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Franklin Templeton ETF vs. NEOS Nasdaq 100
Performance |
| Timeline |
| Franklin Templeton ETF |
| NEOS Nasdaq 100 |
Franklin Templeton and NEOS Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and NEOS Nasdaq
The main advantage of trading using opposite Franklin Templeton and NEOS Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, NEOS Nasdaq 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 NEOS Nasdaq will offset losses from the drop in NEOS Nasdaq'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 |
| NEOS Nasdaq vs. Global X SP | NEOS Nasdaq vs. Amplify CWP Enhanced | NEOS Nasdaq vs. JPMorgan Nasdaq Equity | NEOS Nasdaq vs. NEOS ETF Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
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