Correlation Between Franklin Dynatech and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Franklin Dynatech 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 Franklin Dynatech and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Dynatech Fund and Franklin Templeton Multi Asset, you can compare the effects of market volatilities on Franklin Dynatech 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 Franklin Dynatech with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Dynatech and Franklin Templeton.
Diversification Opportunities for Franklin Dynatech and Franklin Templeton
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Dynatech Fund and Franklin Templeton Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and Franklin Dynatech 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 Dynatech Fund 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 has no effect on the direction of Franklin Dynatech i.e., Franklin Dynatech and Franklin Templeton go up and down completely randomly.
Pair Corralation between Franklin Dynatech and Franklin Templeton
Assuming the 90 days horizon Franklin Dynatech Fund is expected to generate 5.4 times more return on investment than Franklin Templeton. However, Franklin Dynatech is 5.4 times more volatile than Franklin Templeton Multi Asset. It trades about 0.27 of its potential returns per unit of risk. Franklin Templeton Multi Asset is currently generating about 0.14 per unit of risk. If you would invest 15,910 in Franklin Dynatech Fund on September 3, 2024 and sell it today you would earn a total of 930.00 from holding Franklin Dynatech Fund or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Dynatech Fund vs. Franklin Templeton Multi Asset
Performance |
| Timeline |
| Franklin Dynatech |
| Franklin Templeton |
Franklin Dynatech and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Dynatech and Franklin Templeton
The main advantage of trading using opposite Franklin Dynatech and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Dynatech 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.| Franklin Dynatech vs. Aam Select Income | Franklin Dynatech vs. Volumetric Fund Volumetric | Franklin Dynatech vs. Bbh Intermediate Municipal | Franklin Dynatech vs. Scharf Global Opportunity |
| Franklin Templeton vs. Deutsche Real Estate | Franklin Templeton vs. Goldman Sachs Real | Franklin Templeton vs. Columbia Real Estate | Franklin Templeton vs. Fidelity Real Estate |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |