Correlation Between Americafirst Monthly and Franklin Templeton

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

By analyzing existing cross correlation between Americafirst Monthly Risk On and Franklin Templeton Multi Asset, you can compare the effects of market volatilities on Americafirst Monthly 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 Americafirst Monthly with a short position of Franklin Templeton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Monthly and Franklin Templeton.

Diversification Opportunities for Americafirst Monthly and Franklin Templeton

0.94

Correlation Coefficient

Americafirst Monthly  Franklin Templeton

Almost no diversification

The 3 months correlation between Americafirst and Franklin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Monthly Risk On and Franklin Templeton Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and Americafirst Monthly 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 Americafirst Monthly Risk On 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 has no effect on the direction of Americafirst Monthly i.e., Americafirst Monthly and Franklin Templeton go up and down completely randomly.

Pair Corralation between Americafirst Monthly and Franklin Templeton

Assuming the 90 days horizon Americafirst Monthly Risk On is expected to generate 3.06 times more return on investment than Franklin Templeton. However, Americafirst Monthly is 3.06 times more volatile than Franklin Templeton Multi Asset. It trades about 0.29 of its potential returns per unit of risk. Franklin Templeton Multi Asset is currently generating about 0.13 per unit of risk. If you would invest  1,349  in Americafirst Monthly Risk On on May 7, 2025 and sell it today you would earn a total of  139.00  from holding Americafirst Monthly Risk On or generate 10.3% return on investment over 90 days.

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

Americafirst Monthly Risk On  vs.  Franklin Templeton Multi Asset

Americafirst Monthly

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Americafirst Monthly Risk On are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Americafirst Monthly may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Franklin Templeton

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Templeton Multi Asset are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Franklin Templeton is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Americafirst Monthly and Franklin Templeton

The main advantage of trading using opposite Americafirst Monthly and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Monthly 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.

The idea behind Americafirst Monthly Risk On and Franklin Templeton Multi Asset 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.