Correlation Between Templeton Global and Franklin Strategic
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Franklin Strategic 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 Templeton Global and Franklin Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Franklin Strategic Income, you can compare the effects of market volatilities on Templeton Global and Franklin Strategic 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 Templeton Global with a short position of Franklin Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Franklin Strategic.
Diversification Opportunities for Templeton Global and Franklin Strategic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Templeton and Franklin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Franklin Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic Income and Templeton Global 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 Templeton Global Bond are associated (or correlated) with Franklin Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Strategic Income has no effect on the direction of Templeton Global i.e., Templeton Global and Franklin Strategic go up and down completely randomly.
Pair Corralation between Templeton Global and Franklin Strategic
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Franklin Strategic. In addition to that, Templeton Global is 2.3 times more volatile than Franklin Strategic Income. It trades about -0.01 of its total potential returns per unit of risk. Franklin Strategic Income is currently generating about 0.1 per unit of volatility. If you would invest 744.00 in Franklin Strategic Income on September 3, 2024 and sell it today you would earn a total of 95.00 from holding Franklin Strategic Income or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Franklin Strategic Income
Performance |
| Timeline |
| Templeton Global Bond |
| Franklin Strategic Income |
Templeton Global and Franklin Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Franklin Strategic
The main advantage of trading using opposite Templeton Global and Franklin Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Franklin Strategic 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 Strategic will offset losses from the drop in Franklin Strategic's long position.| Templeton Global vs. Dodge Cox Emerging | Templeton Global vs. Dodge Income Fund | Templeton Global vs. Hotchkis Wiley High | Templeton Global vs. T Rowe Price |
| Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund | Franklin Strategic vs. Pimco Income Fund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |