Correlation Between USCF ETF and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both USCF 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 USCF 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 USCF ETF Trust and Franklin Templeton ETF, you can compare the effects of market volatilities on USCF 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 USCF ETF with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of USCF ETF and Franklin Templeton.
Diversification Opportunities for USCF ETF and Franklin Templeton
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USCF and Franklin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding USCF 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 USCF 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 USCF 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 USCF ETF i.e., USCF ETF and Franklin Templeton go up and down completely randomly.
Pair Corralation between USCF ETF and Franklin Templeton
Considering the 90-day investment horizon USCF ETF Trust is expected to under-perform the Franklin Templeton. In addition to that, USCF ETF is 1.02 times more volatile than Franklin Templeton ETF. It trades about -0.16 of its total potential returns per unit of risk. Franklin Templeton ETF is currently generating about 0.09 per unit of volatility. If you would invest 2,700 in Franklin Templeton ETF on September 13, 2024 and sell it today you would earn a total of 36.87 from holding Franklin Templeton ETF or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USCF ETF Trust vs. Franklin Templeton ETF
Performance |
| Timeline |
| USCF ETF Trust |
| Franklin Templeton ETF |
USCF ETF and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USCF ETF and Franklin Templeton
The main advantage of trading using opposite USCF ETF and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USCF 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.| USCF ETF vs. Freedom Day Dividend | USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. iShares MSCI China | USCF ETF vs. Tidal Trust II |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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