Correlation Between Franklin Growth and Nuveen Louisiana
Can any of the company-specific risk be diversified away by investing in both Franklin Growth and Nuveen Louisiana 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 Growth and Nuveen Louisiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Growth Opportunities and Nuveen Louisiana Municipal, you can compare the effects of market volatilities on Franklin Growth and Nuveen Louisiana 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 Growth with a short position of Nuveen Louisiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Growth and Nuveen Louisiana.
Diversification Opportunities for Franklin Growth and Nuveen Louisiana
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Nuveen is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Growth Opportunities and Nuveen Louisiana Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Louisiana Mun and Franklin Growth 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 Growth Opportunities are associated (or correlated) with Nuveen Louisiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Louisiana Mun has no effect on the direction of Franklin Growth i.e., Franklin Growth and Nuveen Louisiana go up and down completely randomly.
Pair Corralation between Franklin Growth and Nuveen Louisiana
Assuming the 90 days horizon Franklin Growth Opportunities is expected to under-perform the Nuveen Louisiana. In addition to that, Franklin Growth is 6.28 times more volatile than Nuveen Louisiana Municipal. It trades about -0.01 of its total potential returns per unit of risk. Nuveen Louisiana Municipal is currently generating about 0.43 per unit of volatility. If you would invest 1,051 in Nuveen Louisiana Municipal on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Nuveen Louisiana Municipal or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Growth Opportunities vs. Nuveen Louisiana Municipal
Performance |
| Timeline |
| Franklin Growth Oppo |
| Nuveen Louisiana Mun |
Franklin Growth and Nuveen Louisiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Growth and Nuveen Louisiana
The main advantage of trading using opposite Franklin Growth and Nuveen Louisiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Growth position performs unexpectedly, Nuveen Louisiana 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 Louisiana will offset losses from the drop in Nuveen Louisiana's long position.| Franklin Growth vs. American Funds The | Franklin Growth vs. American Funds The | Franklin Growth vs. Growth Fund Of | Franklin Growth vs. Growth Fund Of |
| Nuveen Louisiana vs. Needham Aggressive Growth | Nuveen Louisiana vs. Champlain Mid Cap | Nuveen Louisiana vs. Qs Moderate Growth | Nuveen Louisiana vs. Franklin Growth Opportunities |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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