Correlation Between Hartford Short and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Hartford Short 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 Hartford Short and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Short Duration and Franklin Templeton ETF, you can compare the effects of market volatilities on Hartford Short 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 Hartford Short with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Short and Franklin Templeton.
Diversification Opportunities for Hartford Short and Franklin Templeton
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hartford and Franklin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Short Duration 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 Hartford Short 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 Hartford Short Duration 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 Hartford Short i.e., Hartford Short and Franklin Templeton go up and down completely randomly.
Pair Corralation between Hartford Short and Franklin Templeton
Given the investment horizon of 90 days Hartford Short Duration is expected to generate 0.26 times more return on investment than Franklin Templeton. However, Hartford Short Duration is 3.86 times less risky than Franklin Templeton. It trades about 0.22 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about -0.12 per unit of risk. If you would invest 3,894 in Hartford Short Duration on August 23, 2024 and sell it today you would earn a total of 17.00 from holding Hartford Short Duration or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Short Duration vs. Franklin Templeton ETF
Performance |
| Timeline |
| Hartford Short Duration |
| Franklin Templeton ETF |
Hartford Short and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Short and Franklin Templeton
The main advantage of trading using opposite Hartford Short and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Short 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.| Hartford Short vs. SPDR Bloomberg 1 3 | Hartford Short vs. JPMorgan Ultra Short Income | Hartford Short vs. iShares Ultra Short Term | Hartford Short vs. First Trust Enhanced |
| Franklin Templeton vs. Hartford Short Duration | Franklin Templeton vs. American Century Diversified | Franklin Templeton vs. First Trust Short | Franklin Templeton vs. HUMANA INC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |