Correlation Between Mast Global and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Mast Global and Franklin Templeton 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 Mast Global and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mast Global Battery and Franklin Templeton ETF, you can compare the effects of market volatilities on Mast Global and Franklin Templeton 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 Mast Global with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mast Global and Franklin Templeton.
Diversification Opportunities for Mast Global and Franklin Templeton
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mast and Franklin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mast Global Battery and Franklin Templeton ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton ETF and Mast Global 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 Mast Global Battery are associated (or correlated) with Franklin Templeton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Templeton ETF has no effect on the direction of Mast Global i.e., Mast Global and Franklin Templeton go up and down completely randomly.
Pair Corralation between Mast Global and Franklin Templeton
Allowing for the 90-day total investment horizon Mast Global Battery is expected to generate 1.44 times more return on investment than Franklin Templeton. However, Mast Global is 1.44 times more volatile than Franklin Templeton ETF. It trades about -0.07 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about -0.14 per unit of risk. If you would invest 2,601 in Mast Global Battery on August 27, 2024 and sell it today you would lose (60.00) from holding Mast Global Battery or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mast Global Battery vs. Franklin Templeton ETF
Performance |
| Timeline |
| Mast Global Battery |
| Franklin Templeton ETF |
Mast Global and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mast Global and Franklin Templeton
The main advantage of trading using opposite Mast Global and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mast Global position performs unexpectedly, Franklin Templeton 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 Templeton will offset losses from the drop in Franklin Templeton's long position.| Mast Global vs. iShares Dividend and | Mast Global vs. Martin Currie Sustainable | Mast Global vs. VictoryShares THB Mid | Mast Global vs. AdvisorShares Gerber Kawasaki |
| Franklin Templeton vs. Invesco PureBeta MSCI | Franklin Templeton vs. Aquagold International | Franklin Templeton vs. Morningstar Unconstrained Allocation | Franklin Templeton vs. High Yield Municipal Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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