Correlation Between Franklin Ohio and Nuveen Ohio
Can any of the company-specific risk be diversified away by investing in both Franklin Ohio and Nuveen Ohio 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 Ohio and Nuveen Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Ohio Tax Free and Nuveen Ohio Municipal, you can compare the effects of market volatilities on Franklin Ohio and Nuveen Ohio 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 Ohio with a short position of Nuveen Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Ohio and Nuveen Ohio.
Diversification Opportunities for Franklin Ohio and Nuveen Ohio
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Nuveen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Ohio Tax Free and Nuveen Ohio Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Ohio Municipal and Franklin Ohio 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 Ohio Tax Free are associated (or correlated) with Nuveen Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Ohio Municipal has no effect on the direction of Franklin Ohio i.e., Franklin Ohio and Nuveen Ohio go up and down completely randomly.
Pair Corralation between Franklin Ohio and Nuveen Ohio
Assuming the 90 days horizon Franklin Ohio Tax Free is expected to generate 0.97 times more return on investment than Nuveen Ohio. However, Franklin Ohio Tax Free is 1.03 times less risky than Nuveen Ohio. It trades about 0.13 of its potential returns per unit of risk. Nuveen Ohio Municipal is currently generating about 0.05 per unit of risk. If you would invest 1,139 in Franklin Ohio Tax Free on September 2, 2024 and sell it today you would earn a total of 40.00 from holding Franklin Ohio Tax Free or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Ohio Tax Free vs. Nuveen Ohio Municipal
Performance |
| Timeline |
| Franklin Ohio Tax |
| Nuveen Ohio Municipal |
Franklin Ohio and Nuveen Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Ohio and Nuveen Ohio
The main advantage of trading using opposite Franklin Ohio and Nuveen Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Ohio position performs unexpectedly, Nuveen Ohio 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 Nuveen Ohio will offset losses from the drop in Nuveen Ohio's long position.| Franklin Ohio vs. Franklin Mutual Beacon | Franklin Ohio vs. Templeton Developing Markets | Franklin Ohio vs. Franklin Mutual Global | Franklin Ohio vs. Franklin Mutual Global |
| Nuveen Ohio vs. Franklin Ohio Tax Free | Nuveen Ohio vs. Fidelity Ohio Municipal | Nuveen Ohio vs. Vanguard Ohio Long Term | Nuveen Ohio vs. Eaton Vance Ohio |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |