Correlation Between Franklin Templeton and Franklin New
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Franklin New 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 New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton Smacs and Franklin New York, you can compare the effects of market volatilities on Franklin Templeton and Franklin New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Franklin New.
Diversification Opportunities for Franklin Templeton and Franklin New
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton Smacs and Franklin New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin New York 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 Smacs are associated (or correlated) with Franklin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin New York has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Franklin New go up and down completely randomly.
Pair Corralation between Franklin Templeton and Franklin New
Assuming the 90 days horizon Franklin Templeton is expected to generate 1.14 times less return on investment than Franklin New. But when comparing it to its historical volatility, Franklin Templeton Smacs is 1.11 times less risky than Franklin New. It trades about 0.2 of its potential returns per unit of risk. Franklin New York is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 992.00 in Franklin New York on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Franklin New York or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Franklin Templeton Smacs vs. Franklin New York
Performance |
| Timeline |
| Franklin Templeton Smacs |
| Franklin New York |
Franklin Templeton and Franklin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Franklin New
The main advantage of trading using opposite Franklin Templeton and Franklin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Franklin New 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 New will offset losses from the drop in Franklin New's long position.| Franklin Templeton vs. Rbc Global Equity | Franklin Templeton vs. Gmo Global Equity | Franklin Templeton vs. Dreyfusstandish Global Fixed | Franklin Templeton vs. Balanced Fund Retail |
| Franklin New vs. California Bond Fund | Franklin New vs. Artisan High Income | Franklin New vs. T Rowe Price | Franklin New vs. Victory High Yield |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance |