Correlation Between Franklin Templeton and OneAscent International

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

By analyzing existing cross correlation between Franklin Templeton ETF and OneAscent International Equity, you can compare the effects of market volatilities on Franklin Templeton and OneAscent International 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 Templeton with a short position of OneAscent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and OneAscent International.

Diversification Opportunities for Franklin Templeton and OneAscent International

0.92

Correlation Coefficient

Franklin Templeton  OneAscent International

Almost no diversification

The 3 months correlation between Franklin and OneAscent is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and OneAscent International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent International and Franklin Templeton 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 Templeton ETF are associated (or correlated) with OneAscent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent International has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and OneAscent International go up and down completely randomly.

Pair Corralation between Franklin Templeton and OneAscent International

Given the investment horizon of 90 days Franklin Templeton is expected to generate 2.05 times less return on investment than OneAscent International. But when comparing it to its historical volatility, Franklin Templeton ETF is 1.02 times less risky than OneAscent International. It trades about 0.04 of its potential returns per unit of risk. OneAscent International Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,215  in OneAscent International Equity on December 30, 2024 and sell it today you would earn a total of  151.00  from holding OneAscent International Equity or generate 4.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Franklin Templeton ETF  vs.  OneAscent International Equity

Franklin Templeton ETF

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Templeton ETF are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Franklin Templeton is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

OneAscent International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent International Equity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, OneAscent International is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Franklin Templeton and OneAscent International

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

The idea behind Franklin Templeton ETF and OneAscent International Equity 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..