Correlation Between Franklin Core and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Franklin Core 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 Franklin Core and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Core Dividend and Franklin Templeton ETF, you can compare the effects of market volatilities on Franklin Core 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 Franklin Core with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Core and Franklin Templeton.
Diversification Opportunities for Franklin Core and Franklin Templeton
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Core Dividend 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 Franklin Core 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 Franklin Core Dividend 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 Franklin Core i.e., Franklin Core and Franklin Templeton go up and down completely randomly.
Pair Corralation between Franklin Core and Franklin Templeton
Given the investment horizon of 90 days Franklin Core is expected to generate 1.03 times less return on investment than Franklin Templeton. But when comparing it to its historical volatility, Franklin Core Dividend is 1.05 times less risky than Franklin Templeton. It trades about 0.17 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,185 in Franklin Templeton ETF on November 9, 2024 and sell it today you would earn a total of 144.00 from holding Franklin Templeton ETF or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Core Dividend vs. Franklin Templeton ETF
Performance |
| Timeline |
| Franklin Core Dividend |
| Franklin Templeton ETF |
Franklin Core and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Core and Franklin Templeton
The main advantage of trading using opposite Franklin Core and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Core 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.| Franklin Core vs. WisdomTree Trust | Franklin Core vs. Franklin International Core | Franklin Core vs. Franklin Templeton ETF | Franklin Core vs. Affinity World Leaders |
| Franklin Templeton vs. Franklin Core Dividend | Franklin Templeton vs. WisdomTree Multifactor | Franklin Templeton vs. American Century STOXX | Franklin Templeton vs. Vanguard Quality Factor |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |