Correlation Between Franklin Templeton and Tortoise Capital

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

Diversification Opportunities for Franklin Templeton and Tortoise Capital

0.85

Correlation Coefficient

Franklin Templeton  Tortoise Capital

Very poor diversification

The 3 months correlation between Franklin and Tortoise is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Templeton ETF and Tortoise Capital Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Capital Series 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 Tortoise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Capital Series has no effect on the direction of Franklin Templeton i.e., Franklin Templeton and Tortoise Capital go up and down completely randomly.

Pair Corralation between Franklin Templeton and Tortoise Capital

Given the investment horizon of 90 days Franklin Templeton is expected to generate 2.95 times less return on investment than Tortoise Capital. But when comparing it to its historical volatility, Franklin Templeton ETF is 2.32 times less risky than Tortoise Capital. It trades about 0.13 of its potential returns per unit of risk. Tortoise Capital Series is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,560  in Tortoise Capital Series on September 2, 2025 and sell it today you would earn a total of  579.80  from holding Tortoise Capital Series or generate 22.65% return on investment over 90 days.

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

Franklin Templeton ETF  vs.  Tortoise Capital Series

Franklin Templeton ETF

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Templeton ETF are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Franklin Templeton may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Tortoise Capital Series

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Capital Series are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Tortoise Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Franklin Templeton and Tortoise Capital

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

The idea behind Franklin Templeton ETF and Tortoise Capital Series 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.

Check out your portfolio center.

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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.