Correlation Between TrueShares Technology and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both TrueShares Technology 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 TrueShares Technology and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrueShares Technology AI and Franklin Templeton ETF, you can compare the effects of market volatilities on TrueShares Technology 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 TrueShares Technology with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrueShares Technology and Franklin Templeton.
Diversification Opportunities for TrueShares Technology and Franklin Templeton
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TrueShares and Franklin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TrueShares Technology AI 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 TrueShares Technology 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 TrueShares Technology AI 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 TrueShares Technology i.e., TrueShares Technology and Franklin Templeton go up and down completely randomly.
Pair Corralation between TrueShares Technology and Franklin Templeton
Given the investment horizon of 90 days TrueShares Technology AI is expected to under-perform the Franklin Templeton. But the etf apears to be less risky and, when comparing its historical volatility, TrueShares Technology AI is 1.03 times less risky than Franklin Templeton. The etf trades about -0.03 of its potential returns per unit of risk. The Franklin Templeton ETF is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,867 in Franklin Templeton ETF on October 22, 2024 and sell it today you would earn a total of 156.00 from holding Franklin Templeton ETF or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrueShares Technology AI vs. Franklin Templeton ETF
Performance |
| Timeline |
| TrueShares Technology |
| Franklin Templeton ETF |
TrueShares Technology and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrueShares Technology and Franklin Templeton
The main advantage of trading using opposite TrueShares Technology and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrueShares Technology 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.| TrueShares Technology vs. Franklin Disruptive Commerce | TrueShares Technology vs. Robo Global Artificial | TrueShares Technology vs. Innovator Loup Frontier | TrueShares Technology vs. Franklin Templeton ETF |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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