Correlation Between Franklin High and Franklin Florida
Can any of the company-specific risk be diversified away by investing in both Franklin High and Franklin Florida 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 High and Franklin Florida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Income and Franklin Florida Tax Free, you can compare the effects of market volatilities on Franklin High and Franklin Florida 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 High with a short position of Franklin Florida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Franklin Florida.
Diversification Opportunities for Franklin High and Franklin Florida
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Income and Franklin Florida Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Florida Tax and Franklin High 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 High Income are associated (or correlated) with Franklin Florida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Florida Tax has no effect on the direction of Franklin High i.e., Franklin High and Franklin Florida go up and down completely randomly.
Pair Corralation between Franklin High and Franklin Florida
If you would invest 173.00 in Franklin High Income on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Franklin High Income or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin High Income vs. Franklin Florida Tax Free
Performance |
| Timeline |
| Franklin High Income |
| Franklin Florida Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Franklin Florida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Franklin Florida
The main advantage of trading using opposite Franklin High and Franklin Florida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Franklin Florida 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 Florida will offset losses from the drop in Franklin Florida's long position.| Franklin High vs. Guggenheim High Yield | Franklin High vs. American Century High | Franklin High vs. Calvert High Yield | Franklin High vs. Virtus High Yield |
| Franklin Florida vs. Massmutual Premier Diversified | Franklin Florida vs. Fidelity Advisor Diversified | Franklin Florida vs. Harbor Diversified International | Franklin Florida vs. Aqr Diversified Arbitrage |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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