Correlation Between Citigroup Capital and Franklin Templeton

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

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

Diversification Opportunities for Citigroup Capital and Franklin Templeton

0.53

Correlation Coefficient

Citigroup Capital  Franklin Templeton

Very weak diversification

The 3 months correlation between Citigroup and Franklin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Capital XIII and Franklin Templeton Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Templeton and Citigroup Capital 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 Citigroup Capital XIII 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 Citigroup Capital i.e., Citigroup Capital and Franklin Templeton go up and down completely randomly.

Pair Corralation between Citigroup Capital and Franklin Templeton

Given the investment horizon of 90 days Citigroup Capital XIII is expected to generate 1.3 times more return on investment than Franklin Templeton. However, Citigroup Capital is 1.3 times more volatile than Franklin Templeton Limited. It trades about 0.13 of its potential returns per unit of risk. Franklin Templeton Limited is currently generating about 0.01 per unit of risk. If you would invest  2,986  in Citigroup Capital XIII on July 22, 2025 and sell it today you would earn a total of  114.00  from holding Citigroup Capital XIII or generate 3.82% return on investment over 90 days.

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

Citigroup Capital XIII  vs.  Franklin Templeton Limited

Citigroup Capital XIII

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Capital XIII are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Citigroup Capital is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Franklin Templeton

Risk-Adjusted Performance

Weakest

Over the last 90 days Franklin Templeton Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Franklin Templeton is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup Capital and Franklin Templeton

The main advantage of trading using opposite Citigroup Capital and Franklin Templeton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup Capital 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 Citigroup Capital XIII and Franklin Templeton Limited 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..