Correlation Between Simt Sp and Franklin Efolio
Can any of the company-specific risk be diversified away by investing in both Simt Sp and Franklin Efolio 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 Simt Sp and Franklin Efolio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Sp 500 and Franklin Efolio Allocation, you can compare the effects of market volatilities on Simt Sp and Franklin Efolio 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 Simt Sp with a short position of Franklin Efolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Sp and Franklin Efolio.
Diversification Opportunities for Simt Sp and Franklin Efolio
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simt and Franklin is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Simt Sp 500 and Franklin Efolio Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Efolio Allo and Simt Sp 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 Simt Sp 500 are associated (or correlated) with Franklin Efolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Efolio Allo has no effect on the direction of Simt Sp i.e., Simt Sp and Franklin Efolio go up and down completely randomly.
Pair Corralation between Simt Sp and Franklin Efolio
Assuming the 90 days horizon Simt Sp 500 is expected to generate 1.01 times more return on investment than Franklin Efolio. However, Simt Sp is 1.01 times more volatile than Franklin Efolio Allocation. It trades about 0.11 of its potential returns per unit of risk. Franklin Efolio Allocation is currently generating about 0.04 per unit of risk. If you would invest 10,376 in Simt Sp 500 on August 19, 2025 and sell it today you would earn a total of 536.00 from holding Simt Sp 500 or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Sp 500 vs. Franklin Efolio Allocation
Performance |
| Timeline |
| Simt Sp 500 |
| Franklin Efolio Allo |
Simt Sp and Franklin Efolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Sp and Franklin Efolio
The main advantage of trading using opposite Simt Sp and Franklin Efolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Sp position performs unexpectedly, Franklin Efolio 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 Efolio will offset losses from the drop in Franklin Efolio's long position.| Simt Sp vs. Simt Sp 500 | Simt Sp vs. Needham Aggressive Growth | Simt Sp vs. Ridgeworth Ceredex Mid Cap | Simt Sp vs. Muirfield Fund Retail |
| Franklin Efolio vs. Franklin Efolio Allocation | Franklin Efolio vs. Brown Advisory Flexible | Franklin Efolio vs. Muirfield Fund Retail | Franklin Efolio vs. Sentinel Balanced Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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