Correlation Between Hartford Municipal and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Hartford Municipal and Franklin Emerging 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 Hartford Municipal and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Municipal Income and Franklin Emerging Market, you can compare the effects of market volatilities on Hartford Municipal and Franklin Emerging 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 Hartford Municipal with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Municipal and Franklin Emerging.
Diversification Opportunities for Hartford Municipal and Franklin Emerging
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hartford and Franklin is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Municipal Income and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Hartford Municipal 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 Hartford Municipal Income are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Hartford Municipal i.e., Hartford Municipal and Franklin Emerging go up and down completely randomly.
Pair Corralation between Hartford Municipal and Franklin Emerging
Assuming the 90 days horizon Hartford Municipal is expected to generate 18.39 times less return on investment than Franklin Emerging. But when comparing it to its historical volatility, Hartford Municipal Income is 1.15 times less risky than Franklin Emerging. It trades about 0.03 of its potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Franklin Emerging Market on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Franklin Emerging Market or generate 1.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hartford Municipal Income vs. Franklin Emerging Market
Performance |
Timeline |
Hartford Municipal Income |
Franklin Emerging Market |
Hartford Municipal and Franklin Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hartford Municipal and Franklin Emerging
The main advantage of trading using opposite Hartford Municipal and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Municipal position performs unexpectedly, Franklin Emerging 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 Emerging will offset losses from the drop in Franklin Emerging's long position.Hartford Municipal vs. Blrc Sgy Mnp | Hartford Municipal vs. T Rowe Price | Hartford Municipal vs. Rationalpier 88 Convertible | Hartford Municipal vs. Bbh Intermediate Municipal |
Franklin Emerging vs. Icon Natural Resources | Franklin Emerging vs. Fidelity Advisor Energy | Franklin Emerging vs. Thrivent Natural Resources | Franklin Emerging vs. Goehring Rozencwajg Resources |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |