Correlation Between Nuveen Massachusetts and Franklin Mutual
Can any of the company-specific risk be diversified away by investing in both Nuveen Massachusetts and Franklin Mutual 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 Nuveen Massachusetts and Franklin Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Massachusetts Municipal and Franklin Mutual Global, you can compare the effects of market volatilities on Nuveen Massachusetts and Franklin Mutual 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 Nuveen Massachusetts with a short position of Franklin Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Massachusetts and Franklin Mutual.
Diversification Opportunities for Nuveen Massachusetts and Franklin Mutual
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Franklin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Massachusetts Municipal and Franklin Mutual Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Mutual Global and Nuveen Massachusetts 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 Nuveen Massachusetts Municipal are associated (or correlated) with Franklin Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Mutual Global has no effect on the direction of Nuveen Massachusetts i.e., Nuveen Massachusetts and Franklin Mutual go up and down completely randomly.
Pair Corralation between Nuveen Massachusetts and Franklin Mutual
Assuming the 90 days horizon Nuveen Massachusetts Municipal is expected to generate 0.38 times more return on investment than Franklin Mutual. However, Nuveen Massachusetts Municipal is 2.66 times less risky than Franklin Mutual. It trades about -0.19 of its potential returns per unit of risk. Franklin Mutual Global is currently generating about -0.14 per unit of risk. If you would invest 916.00 in Nuveen Massachusetts Municipal on January 13, 2025 and sell it today you would lose (32.00) from holding Nuveen Massachusetts Municipal or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Massachusetts Municipal vs. Franklin Mutual Global
Performance |
| Timeline |
| Nuveen Massachusetts |
| Franklin Mutual Global |
Nuveen Massachusetts and Franklin Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Massachusetts and Franklin Mutual
The main advantage of trading using opposite Nuveen Massachusetts and Franklin Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Massachusetts position performs unexpectedly, Franklin Mutual 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 Mutual will offset losses from the drop in Franklin Mutual's long position.| Nuveen Massachusetts vs. Nuveen Small Cap | Nuveen Massachusetts vs. Nuveen Real Estate | Nuveen Massachusetts vs. Nuveen Real Estate | Nuveen Massachusetts vs. Nuveen Preferred Securities |
| Franklin Mutual vs. Dodge Cox Stock | Franklin Mutual vs. Cb Large Cap | Franklin Mutual vs. T Rowe Price | Franklin Mutual vs. Lord Abbett Affiliated |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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