Correlation Between Franklin Templeton and Tema Monopolies
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Tema Monopolies 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 Tema Monopolies 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 Tema Monopolies and, you can compare the effects of market volatilities on Franklin Templeton and Tema Monopolies 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 Tema Monopolies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Tema Monopolies.
Diversification Opportunities for Franklin Templeton and Tema Monopolies
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Tema is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Tema Monopolies and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tema Monopolies 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 Tema Monopolies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tema Monopolies has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Tema Monopolies go up and down completely randomly.
Pair Corralation between Franklin Templeton and Tema Monopolies
Given the investment horizon of 90 days Franklin Templeton ETF is not expected to generate positive returns. Moreover, Franklin Templeton is 1.09 times more volatile than Tema Monopolies and. It trades away all of its potential returns to assume current level of volatility. Tema Monopolies and is currently generating about 0.1 per unit of risk. If you would invest 3,179 in Tema Monopolies and on November 1, 2024 and sell it today you would earn a total of 165.00 from holding Tema Monopolies and or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Tema Monopolies and
Performance |
| Timeline |
| Franklin Templeton ETF |
| Tema Monopolies |
Franklin Templeton and Tema Monopolies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Tema Monopolies
The main advantage of trading using opposite Franklin Templeton and Tema Monopolies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Tema Monopolies 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 Tema Monopolies will offset losses from the drop in Tema Monopolies' 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 |
| Tema Monopolies vs. Freedom Day Dividend | Tema Monopolies vs. Franklin Templeton ETF | Tema Monopolies vs. iShares MSCI China | Tema Monopolies 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |