Correlation Between Franklin Templeton and Van Eck
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Van Eck 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 Van Eck 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 Van Eck, you can compare the effects of market volatilities on Franklin Templeton and Van Eck 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 Van Eck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Van Eck.
Diversification Opportunities for Franklin Templeton and Van Eck
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Van is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Van Eck in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Eck 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 Van Eck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Eck has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Van Eck go up and down completely randomly.
Pair Corralation between Franklin Templeton and Van Eck
If you would invest 2,590 in Franklin Templeton ETF on September 13, 2024 and sell it today you would earn a total of 148.00 from holding Franklin Templeton ETF or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Van Eck
Performance |
| Timeline |
| Franklin Templeton ETF |
| Van Eck |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Templeton and Van Eck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Van Eck
The main advantage of trading using opposite Franklin Templeton and Van Eck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Van Eck 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 Van Eck will offset losses from the drop in Van Eck'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 |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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