Correlation Between Apple and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Franklin Templeton Limited, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Franklin Templeton.
Diversification Opportunities for Apple and Franklin Templeton
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and Franklin is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Franklin Templeton Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and Apple 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 Apple Inc 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 has no effect on the direction of Apple i.e., Apple and Franklin Templeton go up and down completely randomly.
Pair Corralation between Apple and Franklin Templeton
Given the investment horizon of 90 days Apple Inc is expected to generate 3.23 times more return on investment than Franklin Templeton. However, Apple is 3.23 times more volatile than Franklin Templeton Limited. It trades about 0.2 of its potential returns per unit of risk. Franklin Templeton Limited is currently generating about -0.11 per unit of risk. If you would invest 23,233 in Apple Inc on August 28, 2025 and sell it today you would earn a total of 4,522 from holding Apple Inc or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Franklin Templeton Limited
Performance |
| Timeline |
| Apple Inc |
| Franklin Templeton |
Apple and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Franklin Templeton
The main advantage of trading using opposite Apple and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Vienna Insurance Group | Apple vs. White Mountains Insurance | Apple vs. Dream Industrial Real | Apple vs. Datadog |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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