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 Series, 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
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Templeton and Franklin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Franklin Strategic Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Strategic Series 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 Series 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 1.11 times more volatile than Franklin Strategic Series. It trades about -0.01 of its total potential returns per unit of risk. Franklin Strategic Series is currently generating about 0.13 per unit of volatility. If you would invest 1,193 in Franklin Strategic Series on August 28, 2024 and sell it today you would earn a total of 102.00 from holding Franklin Strategic Series or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Templeton Global Bond vs. Franklin Strategic Series
Performance |
| Timeline |
| Templeton Global Bond |
| Franklin Strategic Series |
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. Franklin Mutual Beacon | Templeton Global vs. Templeton Developing Markets | Templeton Global vs. Franklin Mutual Global | Templeton Global vs. Franklin Mutual Global |
| Franklin Strategic vs. Franklin Mutual Beacon | Franklin Strategic vs. Templeton Developing Markets | Franklin Strategic vs. Franklin Mutual Global | Franklin Strategic vs. Franklin Mutual Global |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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