Correlation Between 21shares Core and Franklin FTSE

Can any of the company-specific risk be diversified away by investing in both 21shares Core and Franklin FTSE 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 21shares Core and Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 21shares Core Ethereum and Franklin FTSE Brazil, you can compare the effects of market volatilities on 21shares Core and Franklin FTSE 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 21shares Core with a short position of Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21shares Core and Franklin FTSE.

Diversification Opportunities for 21shares Core and Franklin FTSE

-0.71

Correlation Coefficient

21shares Core  Franklin FTSE

Pay attention - limited upside

The 3 months correlation between 21shares and Franklin is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding 21shares Core Ethereum and Franklin FTSE Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Brazil and 21shares Core 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 21shares Core Ethereum are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Brazil has no effect on the direction of 21shares Core i.e., 21shares Core and Franklin FTSE go up and down completely randomly.

Pair Corralation between 21shares Core and Franklin FTSE

Given the investment horizon of 90 days 21shares Core Ethereum is expected to under-perform the Franklin FTSE. In addition to that, 21shares Core is 3.19 times more volatile than Franklin FTSE Brazil. It trades about -0.17 of its total potential returns per unit of risk. Franklin FTSE Brazil is currently generating about 0.2 per unit of volatility. If you would invest  1,424  in Franklin FTSE Brazil on December 22, 2024 and sell it today you would earn a total of  256.00  from holding Franklin FTSE Brazil or generate 17.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

21shares Core Ethereum  vs.  Franklin FTSE Brazil

21shares Core Ethereum

Risk-Adjusted Performance

Very Weak

Over the last 90 days 21shares Core Ethereum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Franklin FTSE Brazil

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin FTSE Brazil are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Franklin FTSE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 21shares Core and Franklin FTSE

The main advantage of trading using opposite 21shares Core and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21shares Core position performs unexpectedly, Franklin FTSE 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 FTSE will offset losses from the drop in Franklin FTSE's long position.

The idea behind 21shares Core Ethereum and Franklin FTSE Brazil pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.