Correlation Between Franklin Exponential and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Franklin Exponential 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 Exponential 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 Exponential Data and Franklin Templeton ETF, you can compare the effects of market volatilities on Franklin Exponential 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 Exponential with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Exponential and Franklin Templeton.
Diversification Opportunities for Franklin Exponential and Franklin Templeton
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Exponential Data 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 Exponential 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 Exponential Data 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 Exponential i.e., Franklin Exponential and Franklin Templeton go up and down completely randomly.
Pair Corralation between Franklin Exponential and Franklin Templeton
Given the investment horizon of 90 days Franklin Exponential Data is expected to generate 0.63 times more return on investment than Franklin Templeton. However, Franklin Exponential Data is 1.58 times less risky than Franklin Templeton. It trades about 0.18 of its potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.06 per unit of risk. If you would invest 2,089 in Franklin Exponential Data on September 1, 2024 and sell it today you would earn a total of 581.00 from holding Franklin Exponential Data or generate 27.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Exponential Data vs. Franklin Templeton ETF
Performance |
| Timeline |
| Franklin Exponential Data |
| Franklin Templeton ETF |
Franklin Exponential and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Exponential and Franklin Templeton
The main advantage of trading using opposite Franklin Exponential and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Exponential 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 Exponential vs. Nexalin Technology | Franklin Exponential vs. Kilroy Realty Corp | Franklin Exponential vs. Highwoods Properties | Franklin Exponential vs. Karat Packaging |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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