Correlation Between Franklin Templeton and Madison ETFs
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Madison ETFs 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 Templeton and Madison ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Templeton ETF and Madison ETFs Trust, you can compare the effects of market volatilities on Franklin Templeton and Madison ETFs 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 Templeton with a short position of Madison ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Madison ETFs.
Diversification Opportunities for Franklin Templeton and Madison ETFs
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Madison is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Madison ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison ETFs Trust and Franklin Templeton 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 Templeton ETF are associated (or correlated) with Madison ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison ETFs Trust has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Madison ETFs go up and down completely randomly.
Pair Corralation between Franklin Templeton and Madison ETFs
Given the investment horizon of 90 days Franklin Templeton ETF is expected to generate 1.19 times more return on investment than Madison ETFs. However, Franklin Templeton is 1.19 times more volatile than Madison ETFs Trust. It trades about 0.17 of its potential returns per unit of risk. Madison ETFs Trust is currently generating about 0.13 per unit of risk. If you would invest 2,907 in Franklin Templeton ETF on June 8, 2025 and sell it today you would earn a total of 212.00 from holding Franklin Templeton ETF or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Madison ETFs Trust
Performance |
| Timeline |
| Franklin Templeton ETF |
| Madison ETFs Trust |
Franklin Templeton and Madison ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Madison ETFs
The main advantage of trading using opposite Franklin Templeton and Madison ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Madison ETFs 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 Madison ETFs will offset losses from the drop in Madison ETFs' long position.| Franklin Templeton vs. Franklin International Core | Franklin Templeton vs. First Trust Exchange Traded | Franklin Templeton vs. Franklin Core Dividend | Franklin Templeton vs. WisdomTree Trust |
| Madison ETFs vs. Strategy Shares | Madison ETFs vs. Freedom Day Dividend | Madison ETFs vs. Franklin Templeton ETF | Madison ETFs vs. iShares MSCI China |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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