Correlation Between Tema ETF and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Tema ETF 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 Tema ETF and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tema ETF Trust and Franklin Templeton ETF, you can compare the effects of market volatilities on Tema ETF 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 Tema ETF with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tema ETF and Franklin Templeton.
Diversification Opportunities for Tema ETF and Franklin Templeton
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tema and Franklin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Tema ETF Trust 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 Tema ETF 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 Tema ETF Trust 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 Tema ETF i.e., Tema ETF and Franklin Templeton go up and down completely randomly.
Pair Corralation between Tema ETF and Franklin Templeton
Given the investment horizon of 90 days Tema ETF Trust is expected to under-perform the Franklin Templeton. In addition to that, Tema ETF is 1.75 times more volatile than Franklin Templeton ETF. It trades about -0.01 of its total potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.21 per unit of volatility. If you would invest 2,657 in Franklin Templeton ETF on November 18, 2024 and sell it today you would earn a total of 90.00 from holding Franklin Templeton ETF or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tema ETF Trust vs. Franklin Templeton ETF
Performance |
| Timeline |
| Tema ETF Trust |
| Franklin Templeton ETF |
Tema ETF and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tema ETF and Franklin Templeton
The main advantage of trading using opposite Tema ETF and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tema ETF 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.| Tema ETF vs. iShares Dividend and | Tema ETF vs. Martin Currie Sustainable | Tema ETF vs. VictoryShares THB Mid | Tema ETF vs. Mast Global Battery |
| Franklin Templeton vs. Franklin Core Dividend | Franklin Templeton vs. Franklin International Core | Franklin Templeton vs. WisdomTree Trust | Franklin Templeton vs. First Trust Exchange Traded |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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