Correlation Between Franklin Real and Nuveen Real
Can any of the company-specific risk be diversified away by investing in both Franklin Real and Nuveen Real 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 Real and Nuveen Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Real Estate and Nuveen Real Estate, you can compare the effects of market volatilities on Franklin Real and Nuveen Real 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 Real with a short position of Nuveen Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Real and Nuveen Real.
Diversification Opportunities for Franklin Real and Nuveen Real
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and Nuveen is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Real Estate and Nuveen Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Real Estate and Franklin Real 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 Real Estate are associated (or correlated) with Nuveen Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Real Estate has no effect on the direction of Franklin Real i.e., Franklin Real and Nuveen Real go up and down completely randomly.
Pair Corralation between Franklin Real and Nuveen Real
Assuming the 90 days horizon Franklin Real Estate is expected to under-perform the Nuveen Real. In addition to that, Franklin Real is 1.08 times more volatile than Nuveen Real Estate. It trades about -0.02 of its total potential returns per unit of risk. Nuveen Real Estate is currently generating about -0.01 per unit of volatility. If you would invest 1,629 in Nuveen Real Estate on September 13, 2024 and sell it today you would lose (9.00) from holding Nuveen Real Estate or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Real Estate vs. Nuveen Real Estate
Performance |
| Timeline |
| Franklin Real Estate |
| Nuveen Real Estate |
Franklin Real and Nuveen Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Real and Nuveen Real
The main advantage of trading using opposite Franklin Real and Nuveen Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Real position performs unexpectedly, Nuveen Real 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 Real will offset losses from the drop in Nuveen Real's long position.| Franklin Real vs. Franklin Natural Resources | Franklin Real vs. Franklin Small Cap | Franklin Real vs. Templeton Developing Markets | Franklin Real vs. Franklin Balance Sheet |
| Nuveen Real vs. Blackrock Hi Yld | Nuveen Real vs. Blackrock Equity Dividend | Nuveen Real vs. Oppenheimer Senior Floating | Nuveen Real vs. American Beacon Bridgeway |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |