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 Smacs is expected to generate 1.21 times more return on investment than Franklin New. However, Franklin Templeton is 1.21 times more volatile than Franklin New York. It trades about 0.08 of its potential returns per unit of risk. Franklin New York is currently generating about 0.07 per unit of risk. If you would invest 796.00 in Franklin Templeton Smacs on September 3, 2024 and sell it today you would earn a total of 103.00 from holding Franklin Templeton Smacs or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| 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. Locorr Longshort Modities | Franklin Templeton vs. Ab Select Longshort | Franklin Templeton vs. Limited Term Tax | Franklin Templeton vs. Calvert Short Duration |
| Franklin New vs. Oppenheimer Rochester | Franklin New vs. Oppenheimer Rochester | Franklin New vs. Vanguard New York | Franklin New vs. Vanguard New York |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |