Correlation Between Franklin Florida and Franklin Double
Can any of the company-specific risk be diversified away by investing in both Franklin Florida and Franklin Double 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 Florida and Franklin Double into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Florida Tax Free and Franklin Double Tax Free, you can compare the effects of market volatilities on Franklin Florida and Franklin Double 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 Florida with a short position of Franklin Double. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Florida and Franklin Double.
Diversification Opportunities for Franklin Florida and Franklin Double
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 Florida Tax Free and Franklin Double Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Double Tax and Franklin Florida 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 Florida Tax Free are associated (or correlated) with Franklin Double. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Double Tax has no effect on the direction of Franklin Florida i.e., Franklin Florida and Franklin Double go up and down completely randomly.
Pair Corralation between Franklin Florida and Franklin Double
If you would invest (100.00) in Franklin Double Tax Free on August 26, 2024 and sell it today you would earn a total of 100.00 from holding Franklin Double Tax Free or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Florida Tax Free vs. Franklin Double Tax Free
Performance |
| Timeline |
| Franklin Florida Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Double Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Florida and Franklin Double Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Florida and Franklin Double
The main advantage of trading using opposite Franklin Florida and Franklin Double positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Florida position performs unexpectedly, Franklin Double 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 Double will offset losses from the drop in Franklin Double's long position.| Franklin Florida vs. Tfa Alphagen Growth | Franklin Florida vs. Mid Cap Growth | Franklin Florida vs. Pace Smallmedium Growth | Franklin Florida vs. Smallcap Growth Fund |
| Franklin Double vs. Kinetics Small Cap | Franklin Double vs. Artisan Small Cap | Franklin Double vs. Tax Managed Mid Small | Franklin Double vs. Ab Small Cap |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world |