Correlation Between Franklin Federal and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Franklin Federal 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 Franklin Federal and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Federal Tax Free and Franklin Federal Tax Free, you can compare the effects of market volatilities on Franklin Federal 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 Franklin Federal with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Federal and Franklin Federal.
Diversification Opportunities for Franklin Federal and Franklin Federal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Franklin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Federal Tax Free and Franklin Federal Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Tax and Franklin Federal 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 Federal Tax Free 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 Tax has no effect on the direction of Franklin Federal i.e., Franklin Federal and Franklin Federal go up and down completely randomly.
Pair Corralation between Franklin Federal and Franklin Federal
Assuming the 90 days horizon Franklin Federal Tax Free is expected to generate 0.94 times more return on investment than Franklin Federal. However, Franklin Federal Tax Free is 1.06 times less risky than Franklin Federal. It trades about -0.06 of its potential returns per unit of risk. Franklin Federal Tax Free is currently generating about -0.06 per unit of risk. If you would invest 1,083 in Franklin Federal Tax Free on November 4, 2024 and sell it today you would lose (3.00) from holding Franklin Federal Tax Free or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Franklin Federal Tax Free vs. Franklin Federal Tax Free
Performance |
| Timeline |
| Franklin Federal Tax |
| Franklin Federal Tax |
Franklin Federal and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Federal and Franklin Federal
The main advantage of trading using opposite Franklin Federal and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Federal 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.| Franklin Federal vs. Blackrock Financial Institutions | Franklin Federal vs. Fidelity Advisor Financial | Franklin Federal vs. Mesirow Financial Small | Franklin Federal vs. Blackstone Secured Lending |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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