Correlation Between Franklin Arizona and Nuveen Arizona
Can any of the company-specific risk be diversified away by investing in both Franklin Arizona and Nuveen Arizona 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 Arizona and Nuveen Arizona into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Arizona Tax Free and Nuveen Arizona Municipal, you can compare the effects of market volatilities on Franklin Arizona and Nuveen Arizona 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 Arizona with a short position of Nuveen Arizona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Arizona and Nuveen Arizona.
Diversification Opportunities for Franklin Arizona and Nuveen Arizona
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Franklin and NUVEEN is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Arizona Tax Free and Nuveen Arizona Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Arizona Municipal and Franklin Arizona 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 Arizona Tax Free are associated (or correlated) with Nuveen Arizona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Arizona Municipal has no effect on the direction of Franklin Arizona i.e., Franklin Arizona and Nuveen Arizona go up and down completely randomly.
Pair Corralation between Franklin Arizona and Nuveen Arizona
Assuming the 90 days horizon Franklin Arizona Tax Free is expected to generate 1.11 times more return on investment than Nuveen Arizona. However, Franklin Arizona is 1.11 times more volatile than Nuveen Arizona Municipal. It trades about 0.14 of its potential returns per unit of risk. Nuveen Arizona Municipal is currently generating about 0.14 per unit of risk. If you would invest 957.00 in Franklin Arizona Tax Free on September 2, 2024 and sell it today you would earn a total of 38.00 from holding Franklin Arizona Tax Free or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Arizona Tax Free vs. Nuveen Arizona Municipal
Performance |
| Timeline |
| Franklin Arizona Tax |
| Nuveen Arizona Municipal |
Franklin Arizona and Nuveen Arizona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Arizona and Nuveen Arizona
The main advantage of trading using opposite Franklin Arizona and Nuveen Arizona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Arizona position performs unexpectedly, Nuveen Arizona 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 Arizona will offset losses from the drop in Nuveen Arizona's long position.| Franklin Arizona vs. Franklin Mutual Beacon | Franklin Arizona vs. Templeton Developing Markets | Franklin Arizona vs. Franklin Mutual Global | Franklin Arizona vs. Franklin Mutual Global |
| Nuveen Arizona vs. Strategic Allocation Moderate | Nuveen Arizona vs. Saat Moderate Strategy | Nuveen Arizona vs. Tiaa Cref Lifestyle Moderate | Nuveen Arizona vs. Qs Moderate Growth |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |