Correlation Between Franklin Rising and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Franklin Rising and Templeton Global 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 Rising and Templeton Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Rising Dividends and Templeton Global Bond, you can compare the effects of market volatilities on Franklin Rising and Templeton Global 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 Rising with a short position of Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Rising and Templeton Global.
Diversification Opportunities for Franklin Rising and Templeton Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Templeton is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Rising Dividends and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond and Franklin Rising 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 Rising Dividends are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Franklin Rising i.e., Franklin Rising and Templeton Global go up and down completely randomly.
Pair Corralation between Franklin Rising and Templeton Global
Assuming the 90 days horizon Franklin Rising Dividends is expected to generate 1.2 times more return on investment than Templeton Global. However, Franklin Rising is 1.2 times more volatile than Templeton Global Bond. It trades about 0.08 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.02 per unit of risk. If you would invest 8,613 in Franklin Rising Dividends on August 24, 2024 and sell it today you would earn a total of 1,123 from holding Franklin Rising Dividends or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Franklin Rising Dividends vs. Templeton Global Bond
Performance |
| Timeline |
| Franklin Rising Dividends |
| Templeton Global Bond |
Franklin Rising and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Rising and Templeton Global
The main advantage of trading using opposite Franklin Rising and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Rising position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Franklin Rising vs. Dunham High Yield | Franklin Rising vs. Pimco High Yield | Franklin Rising vs. Artisan High Income | Franklin Rising vs. Pioneer High Yield |
| Templeton Global vs. Templeton Global Bond | Templeton Global vs. Capital World Bond | Templeton Global vs. Capital World Bond | Templeton Global vs. Capital World Bond |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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