Correlation Between Ftfa-franklin Templeton and Saratoga Small

Can any of the company-specific risk be diversified away by investing in both Ftfa-franklin Templeton and Saratoga Small 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 Templeton and Saratoga Small 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 Saratoga Small Capitalization, you can compare the effects of market volatilities on Ftfa-franklin Templeton and Saratoga Small 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 Templeton with a short position of Saratoga Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa-franklin Templeton and Saratoga Small.

Diversification Opportunities for Ftfa-franklin Templeton and Saratoga Small

0.72

Correlation Coefficient

Ftfa-franklin Templeton  Saratoga Small

Poor diversification

The 3 months correlation between Ftfa-franklin and Saratoga is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Saratoga Small Capitalization in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Small Capit and Ftfa-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 Ftfa Franklin Templeton Growth are associated (or correlated) with Saratoga Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Small Capit has no effect on the direction of Ftfa-franklin Templeton i.e., Ftfa-franklin Templeton and Saratoga Small go up and down completely randomly.

Pair Corralation between Ftfa-franklin Templeton and Saratoga Small

Assuming the 90 days horizon Ftfa-franklin Templeton is expected to generate 1.08 times less return on investment than Saratoga Small. But when comparing it to its historical volatility, Ftfa Franklin Templeton Growth is 2.87 times less risky than Saratoga Small. It trades about 0.16 of its potential returns per unit of risk. Saratoga Small Capitalization is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Saratoga Small Capitalization on July 20, 2025 and sell it today you would earn a total of  2.00  from holding Saratoga Small Capitalization or generate 5.41% return on investment over 90 days.

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

Ftfa Franklin Templeton Growth  vs.  Saratoga Small Capitalization

Ftfa Franklin Templeton

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ftfa Franklin Templeton Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ftfa-franklin Templeton is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Saratoga Small Capit

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Saratoga Small Capitalization are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Saratoga Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ftfa-franklin Templeton and Saratoga Small

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

The idea behind Ftfa Franklin Templeton Growth and Saratoga Small Capitalization 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..