Correlation Between Franklin Templeton and Global X
Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Global X 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 Global X 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 Global X Guru, you can compare the effects of market volatilities on Franklin Templeton and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Global X.
Diversification Opportunities for Franklin Templeton and Global X
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Franklin and Global is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Global X Guru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Guru 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Guru has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Global X go up and down completely randomly.
Pair Corralation between Franklin Templeton and Global X
Given the investment horizon of 90 days Franklin Templeton is expected to generate 1.34 times less return on investment than Global X. But when comparing it to its historical volatility, Franklin Templeton ETF is 1.1 times less risky than Global X. It trades about 0.08 of its potential returns per unit of risk. Global X Guru is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,985 in Global X Guru on September 11, 2025 and sell it today you would earn a total of 345.00 from holding Global X Guru or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Templeton ETF vs. Global X Guru
Performance |
| Timeline |
| Franklin Templeton ETF |
| Global X Guru |
Franklin Templeton and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Templeton and Global X
The main advantage of trading using opposite Franklin Templeton and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Templeton position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Franklin Templeton vs. American Century ETF | Franklin Templeton vs. Invesco SP SmallCap | Franklin Templeton vs. EA Series Trust | Franklin Templeton vs. iShares MSCI Belgium |
| Global X vs. Global X MSCI | Global X vs. Global X SP | Global X vs. Franklin FTSE Switzerland | Global X vs. Regents Park Hedged |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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