Correlation Between IShares SPTSX and Franklin Canadian
Can any of the company-specific risk be diversified away by investing in both IShares SPTSX and Franklin Canadian 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 IShares SPTSX and Franklin Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SPTSX Completion and Franklin Canadian Short, you can compare the effects of market volatilities on IShares SPTSX and Franklin Canadian 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 IShares SPTSX with a short position of Franklin Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SPTSX and Franklin Canadian.
Diversification Opportunities for IShares SPTSX and Franklin Canadian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding iShares SPTSX Completion and Franklin Canadian Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Canadian Short and IShares SPTSX 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 iShares SPTSX Completion are associated (or correlated) with Franklin Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Canadian Short has no effect on the direction of IShares SPTSX i.e., IShares SPTSX and Franklin Canadian go up and down completely randomly.
Pair Corralation between IShares SPTSX and Franklin Canadian
Assuming the 90 days trading horizon iShares SPTSX Completion is expected to generate 9.79 times more return on investment than Franklin Canadian. However, IShares SPTSX is 9.79 times more volatile than Franklin Canadian Short. It trades about 0.17 of its potential returns per unit of risk. Franklin Canadian Short is currently generating about 0.26 per unit of risk. If you would invest 4,495 in iShares SPTSX Completion on August 17, 2025 and sell it today you would earn a total of 511.00 from holding iShares SPTSX Completion or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SPTSX Completion vs. Franklin Canadian Short
Performance |
| Timeline |
| iShares SPTSX Completion |
| Franklin Canadian Short |
IShares SPTSX and Franklin Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SPTSX and Franklin Canadian
The main advantage of trading using opposite IShares SPTSX and Franklin Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SPTSX position performs unexpectedly, Franklin Canadian 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 Canadian will offset losses from the drop in Franklin Canadian's long position.| IShares SPTSX vs. iShares SP Mid Cap | IShares SPTSX vs. Harvest Equal Weight | IShares SPTSX vs. Exemplar Growth and | IShares SPTSX vs. iShares MSCI Min |
| Franklin Canadian vs. BMO Long Provincial | Franklin Canadian vs. BMO Short Federal | Franklin Canadian vs. TD Select Short | Franklin Canadian vs. TD Active High |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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