Correlation Between Franklin FTSE and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Franklin FTSE and SPDR SP 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 FTSE and SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin FTSE Brazil and SPDR SP Materials, you can compare the effects of market volatilities on Franklin FTSE and SPDR SP 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 FTSE with a short position of SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin FTSE and SPDR SP.
Diversification Opportunities for Franklin FTSE and SPDR SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and SPDR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin FTSE Brazil and SPDR SP Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Materials and Franklin FTSE 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 FTSE Brazil are associated (or correlated) with SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP Materials has no effect on the direction of Franklin FTSE i.e., Franklin FTSE and SPDR SP go up and down completely randomly.
Pair Corralation between Franklin FTSE and SPDR SP
If you would invest 1,973 in Franklin FTSE Brazil on September 3, 2025 and sell it today you would earn a total of 298.00 from holding Franklin FTSE Brazil or generate 15.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin FTSE Brazil vs. SPDR SP Materials
Performance |
| Timeline |
| Franklin FTSE Brazil |
| SPDR SP Materials |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Franklin FTSE and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin FTSE and SPDR SP
The main advantage of trading using opposite Franklin FTSE and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin FTSE position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP's long position.| Franklin FTSE vs. Franklin LibertyQ Global | Franklin FTSE vs. Franklin Libertyshares ICAV | Franklin FTSE vs. Franklin FTSE Asia | Franklin FTSE vs. Franklin FTSE Brazil |
| SPDR SP vs. SPDR Dow Jones | SPDR SP vs. SPDR SP Dividend | SPDR SP vs. SPDR Barclays Euro | SPDR SP vs. SPDR SP Consumer |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |