Correlation Between Ab Impact and Franklin Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Franklin Pennsylvania 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 Ab Impact and Franklin Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Franklin Pennsylvania Tax Free, you can compare the effects of market volatilities on Ab Impact and Franklin Pennsylvania 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 Ab Impact with a short position of Franklin Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Franklin Pennsylvania.
Diversification Opportunities for Ab Impact and Franklin Pennsylvania
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between ABIMX and Franklin is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Franklin Pennsylvania Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Pennsylvania and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Franklin Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Pennsylvania has no effect on the direction of Ab Impact i.e., Ab Impact and Franklin Pennsylvania go up and down completely randomly.
Pair Corralation between Ab Impact and Franklin Pennsylvania
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 1.16 times more return on investment than Franklin Pennsylvania. However, Ab Impact is 1.16 times more volatile than Franklin Pennsylvania Tax Free. It trades about 0.21 of its potential returns per unit of risk. Franklin Pennsylvania Tax Free is currently generating about 0.2 per unit of risk. If you would invest 982.00 in Ab Impact Municipal on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Ab Impact Municipal or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ab Impact Municipal vs. Franklin Pennsylvania Tax Free
Performance |
| Timeline |
| Ab Impact Municipal |
| Franklin Pennsylvania |
Ab Impact and Franklin Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Franklin Pennsylvania
The main advantage of trading using opposite Ab Impact and Franklin Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Franklin Pennsylvania 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 Pennsylvania will offset losses from the drop in Franklin Pennsylvania's long position.| Ab Impact vs. Barings Emerging Markets | Ab Impact vs. Artisan Emerging Markets | Ab Impact vs. Black Oak Emerging | Ab Impact vs. Ashmore Emerging Markets |
| Franklin Pennsylvania vs. Pace Municipal Fixed | Franklin Pennsylvania vs. Nuveen Arizona Municipal | Franklin Pennsylvania vs. Ab Impact Municipal | Franklin Pennsylvania vs. Ishares Municipal Bond |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |