Correlation Between Franklin Templeton and Franklin Core
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Franklin Core 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 Franklin Core 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 Franklin Core Dividend, you can compare the effects of market volatilities on Franklin Templeton and Franklin Core 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 Franklin Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Franklin Core.
Diversification Opportunities for Franklin Templeton and Franklin Core
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Franklin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Franklin Core Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Core Dividend 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 Franklin Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Core Dividend has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Franklin Core go up and down completely randomly.
Pair Corralation between Franklin Templeton and Franklin Core
Given the investment horizon of 90 days Franklin Templeton ETF is expected to under-perform the Franklin Core. But the etf apears to be less risky and, when comparing its historical volatility, Franklin Templeton ETF is 1.19 times less risky than Franklin Core. The etf trades about -0.03 of its potential returns per unit of risk. The Franklin Core Dividend is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,566 in Franklin Core Dividend on October 21, 2024 and sell it today you would earn a total of 75.00 from holding Franklin Core Dividend or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Franklin Core Dividend
Performance |
| Timeline |
| Franklin Templeton ETF |
| Franklin Core Dividend |
Franklin Templeton and Franklin Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Franklin Core
The main advantage of trading using opposite Franklin Templeton and Franklin Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Franklin Core 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 Franklin Core will offset losses from the drop in Franklin Core'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 |
| Franklin Core vs. WisdomTree Trust | Franklin Core vs. Franklin International Core | Franklin Core vs. Franklin Templeton ETF | Franklin Core vs. Affinity World Leaders |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |