Correlation Between Bbh Intermediate and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Franklin Federal 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 Bbh Intermediate and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Franklin Federal Limited Term, you can compare the effects of market volatilities on Bbh Intermediate and Franklin Federal 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 Bbh Intermediate with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Franklin Federal.
Diversification Opportunities for Bbh Intermediate and Franklin Federal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bbh and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Franklin Federal Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Lim and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Franklin Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Lim has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Franklin Federal go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Franklin Federal
If you would invest 954.00 in Bbh Intermediate Municipal on January 9, 2025 and sell it today you would earn a total of 62.00 from holding Bbh Intermediate Municipal or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Franklin Federal Limited Term
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Franklin Federal Lim |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bbh Intermediate and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Franklin Federal
The main advantage of trading using opposite Bbh Intermediate and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Franklin Federal 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 Federal will offset losses from the drop in Franklin Federal's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
| Franklin Federal vs. Delaware Investments Ultrashort | Franklin Federal vs. Virtus Multi Sector Short | Franklin Federal vs. Nuveen Short Term | Franklin Federal vs. Blackrock Short Term Inflat Protected |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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