Correlation Between Ftfa Franklin and Calvert Large

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

By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Calvert Large Cap E, you can compare the effects of market volatilities on Ftfa Franklin and Calvert Large 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 Ftfa Franklin with a short position of Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Calvert Large.

Diversification Opportunities for Ftfa Franklin and Calvert Large

0.98

Correlation Coefficient

Ftfa Franklin  Calvert Large

Almost no diversification

The 3 months correlation between Ftfa and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Calvert Large Cap E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Calvert Large go up and down completely randomly.

Pair Corralation between Ftfa Franklin and Calvert Large

Assuming the 90 days horizon Ftfa Franklin is expected to generate 1.68 times less return on investment than Calvert Large. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 1.5 times less risky than Calvert Large. It trades about 0.21 of its potential returns per unit of risk. Calvert Large Cap E is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  4,840  in Calvert Large Cap E on May 5, 2025 and sell it today you would earn a total of  594.00  from holding Calvert Large Cap E or generate 12.27% return on investment over 90 days.

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

Ftfa Franklin Templeton Growth  vs.  Calvert Large Cap E

Ftfa Franklin Templeton

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ftfa Franklin Templeton Growth are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ftfa Franklin may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Calvert Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Large Cap E are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Calvert Large may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ftfa Franklin and Calvert Large

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

The idea behind Ftfa Franklin Templeton Growth and Calvert Large Cap E 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.