Correlation Between Franklin Templeton and Bitwise Funds

Can any of the company-specific risk be diversified away by investing in both Franklin Templeton and Bitwise Funds 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 Bitwise Funds 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 Bitwise Funds Trust, you can compare the effects of market volatilities on Franklin Templeton and Bitwise Funds 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 Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Templeton and Bitwise Funds.

Diversification Opportunities for Franklin Templeton and Bitwise Funds

0.21

Correlation Coefficient

Franklin Templeton  Bitwise Funds

Modest diversification

The 3 months correlation between Franklin and Bitwise is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Bitwise Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Funds Trust 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 Bitwise Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Funds Trust has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Bitwise Funds go up and down completely randomly.

Pair Corralation between Franklin Templeton and Bitwise Funds

Given the investment horizon of 90 days Franklin Templeton ETF is expected to generate 0.24 times more return on investment than Bitwise Funds. However, Franklin Templeton ETF is 4.23 times less risky than Bitwise Funds. It trades about 0.23 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about -0.05 per unit of risk. If you would invest  2,850  in Franklin Templeton ETF on May 25, 2025 and sell it today you would earn a total of  296.00  from holding Franklin Templeton ETF or generate 10.39% return on investment over 90 days.

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

Franklin Templeton ETF  vs.  Bitwise Funds Trust

Franklin Templeton ETF

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Templeton ETF are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Franklin Templeton may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Bitwise Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Bitwise Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Franklin Templeton and Bitwise Funds

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

The idea behind Franklin Templeton ETF and Bitwise Funds Trust 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.