Correlation Between Fidelity Advantage and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage 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 Fidelity Advantage and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Ether and Franklin Templeton ETF, you can compare the effects of market volatilities on Fidelity Advantage 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 Fidelity Advantage with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and Franklin Templeton.
Diversification Opportunities for Fidelity Advantage and Franklin Templeton
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Franklin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Ether 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 Fidelity Advantage 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 Fidelity Advantage Ether 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 Fidelity Advantage i.e., Fidelity Advantage and Franklin Templeton go up and down completely randomly.
Pair Corralation between Fidelity Advantage and Franklin Templeton
Given the investment horizon of 90 days Fidelity Advantage Ether is expected to generate 4.88 times more return on investment than Franklin Templeton. However, Fidelity Advantage is 4.88 times more volatile than Franklin Templeton ETF. It trades about 0.01 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.05 per unit of risk. If you would invest 3,466 in Fidelity Advantage Ether on November 2, 2024 and sell it today you would lose (229.00) from holding Fidelity Advantage Ether or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 26.92% |
| Values | Daily Returns |
Fidelity Advantage Ether vs. Franklin Templeton ETF
Performance |
| Timeline |
| Fidelity Advantage Ether |
| Franklin Templeton ETF |
Fidelity Advantage and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and Franklin Templeton
The main advantage of trading using opposite Fidelity Advantage and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage 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.| Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. iShares Ethereum Trust | Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. Grayscale Ethereum Trust |
| Franklin Templeton vs. Franklin Core Dividend | Franklin Templeton vs. Franklin International Core | Franklin Templeton vs. WisdomTree Trust | Franklin Templeton vs. First Trust Exchange Traded |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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