Correlation Between Franklin Templeton and Amplify ETF
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Amplify 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 Amplify 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 Amplify ETF Trust, you can compare the effects of market volatilities on Franklin Templeton and Amplify 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 Amplify ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Amplify ETF.
Diversification Opportunities for Franklin Templeton and Amplify ETF
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Amplify is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Amplify ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify 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 Amplify ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify ETF Trust has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Amplify ETF go up and down completely randomly.
Pair Corralation between Franklin Templeton and Amplify ETF
Given the investment horizon of 90 days Franklin Templeton ETF is expected to generate 0.89 times more return on investment than Amplify ETF. However, Franklin Templeton ETF is 1.12 times less risky than Amplify ETF. It trades about -0.15 of its potential returns per unit of risk. Amplify ETF Trust is currently generating about -0.43 per unit of risk. If you would invest 2,781 in Franklin Templeton ETF on August 27, 2024 and sell it today you would lose (90.00) from holding Franklin Templeton ETF or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Amplify ETF Trust
Performance |
| Timeline |
| Franklin Templeton ETF |
| Amplify ETF Trust |
Franklin Templeton and Amplify ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Amplify ETF
The main advantage of trading using opposite Franklin Templeton and Amplify ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Amplify 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 Amplify ETF will offset losses from the drop in Amplify ETF's long position.| Franklin Templeton vs. Invesco PureBeta MSCI | Franklin Templeton vs. Aquagold International | Franklin Templeton vs. Morningstar Unconstrained Allocation | Franklin Templeton vs. High Yield Municipal Fund |
| Amplify ETF vs. iShares Dividend and | Amplify ETF vs. Martin Currie Sustainable | Amplify ETF vs. VictoryShares THB Mid | Amplify ETF vs. Mast Global Battery |
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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