Correlation Between IHS Holding and Franklin Templeton
Can any of the company-specific risk be diversified away by investing in both IHS Holding 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 IHS Holding and Franklin Templeton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and Franklin Templeton Smacs, you can compare the effects of market volatilities on IHS Holding 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 IHS Holding with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and Franklin Templeton.
Diversification Opportunities for IHS Holding and Franklin Templeton
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IHS and Franklin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and Franklin Templeton Smacs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton Smacs and IHS Holding 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 IHS Holding 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 Smacs has no effect on the direction of IHS Holding i.e., IHS Holding and Franklin Templeton go up and down completely randomly.
Pair Corralation between IHS Holding and Franklin Templeton
Considering the 90-day investment horizon IHS Holding is expected to generate 4.51 times more return on investment than Franklin Templeton. However, IHS Holding is 4.51 times more volatile than Franklin Templeton Smacs. It trades about 0.13 of its potential returns per unit of risk. Franklin Templeton Smacs is currently generating about 0.16 per unit of risk. If you would invest 674.00 in IHS Holding on June 12, 2025 and sell it today you would earn a total of 48.00 from holding IHS Holding or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. Franklin Templeton Smacs
Performance |
| Timeline |
| IHS Holding |
| Franklin Templeton Smacs |
IHS Holding and Franklin Templeton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and Franklin Templeton
The main advantage of trading using opposite IHS Holding and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding 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.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
| Franklin Templeton vs. Calvert Short Duration | Franklin Templeton vs. Virtus Multi Sector Short | Franklin Templeton vs. Angel Oak Ultrashort | Franklin Templeton vs. Delaware Investments Ultrashort |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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