Correlation Between Franklin High and Tax Exempt
Can any of the company-specific risk be diversified away by investing in both Franklin High and Tax Exempt 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 Tax Exempt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin High Yield and The Tax Exempt Fund, you can compare the effects of market volatilities on Franklin High and Tax Exempt 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 Tax Exempt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin High and Tax Exempt.
Diversification Opportunities for Franklin High and Tax Exempt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Tax is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin High Yield and The Tax Exempt Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tax Exempt 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 Yield are associated (or correlated) with Tax Exempt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tax Exempt has no effect on the direction of Franklin High i.e., Franklin High and Tax Exempt go up and down completely randomly.
Pair Corralation between Franklin High and Tax Exempt
If you would invest 800.00 in Franklin High Yield on September 12, 2024 and sell it today you would earn a total of 117.00 from holding Franklin High Yield or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin High Yield vs. The Tax Exempt Fund
Performance |
| Timeline |
| Franklin High Yield |
| Tax Exempt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin High and Tax Exempt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin High and Tax Exempt
The main advantage of trading using opposite Franklin High and Tax Exempt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin High position performs unexpectedly, Tax Exempt 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 Tax Exempt will offset losses from the drop in Tax Exempt's long position.| Franklin High vs. Cref Money Market | Franklin High vs. Chestnut Street Exchange | Franklin High vs. Aig Government Money | Franklin High vs. Matson Money Equity |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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