Correlation Between Ftfa-franklin Templeton and Franklin Equity
Can any of the company-specific risk be diversified away by investing in both Ftfa-franklin Templeton and Franklin Equity 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 Ftfa-franklin Templeton and Franklin Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Franklin Equity Income, you can compare the effects of market volatilities on Ftfa-franklin Templeton and Franklin Equity 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 Ftfa-franklin Templeton with a short position of Franklin Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa-franklin Templeton and Franklin Equity.
Diversification Opportunities for Ftfa-franklin Templeton and Franklin Equity
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ftfa-franklin and Franklin is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Franklin Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Equity Income and Ftfa-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 Ftfa Franklin Templeton Growth are associated (or correlated) with Franklin Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Equity Income has no effect on the direction of Ftfa-franklin Templeton i.e., Ftfa-franklin Templeton and Franklin Equity go up and down completely randomly.
Pair Corralation between Ftfa-franklin Templeton and Franklin Equity
Assuming the 90 days horizon Ftfa-franklin Templeton is expected to generate 1.41 times less return on investment than Franklin Equity. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.08 times less risky than Franklin Equity. It trades about 0.23 of its potential returns per unit of risk. Franklin Equity Income is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 3,146 in Franklin Equity Income on May 27, 2025 and sell it today you would earn a total of 327.00 from holding Franklin Equity Income or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Franklin Equity Income
Performance |
| Timeline |
| Ftfa Franklin Templeton |
| Franklin Equity Income |
Ftfa-franklin Templeton and Franklin Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ftfa-franklin Templeton and Franklin Equity
The main advantage of trading using opposite Ftfa-franklin Templeton and Franklin Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa-franklin Templeton position performs unexpectedly, Franklin Equity 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 Equity will offset losses from the drop in Franklin Equity's long position.| Ftfa-franklin Templeton vs. Ab Select Equity | Ftfa-franklin Templeton vs. Iaadx | Ftfa-franklin Templeton vs. Fabwx | Ftfa-franklin Templeton vs. Aam Select Income |
| Franklin Equity vs. John Hancock Financial | Franklin Equity vs. Fidelity Advisor Financial | Franklin Equity vs. Icon Financial Fund | Franklin Equity vs. Mesirow Financial Small |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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