Correlation Between Smallcap Growth and Franklin Florida
Can any of the company-specific risk be diversified away by investing in both Smallcap Growth and Franklin Florida 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 Smallcap Growth and Franklin Florida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smallcap Growth Fund and Franklin Florida Tax Free, you can compare the effects of market volatilities on Smallcap Growth and Franklin Florida 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 Smallcap Growth with a short position of Franklin Florida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Growth and Franklin Florida.
Diversification Opportunities for Smallcap Growth and Franklin Florida
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smallcap and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Growth Fund and Franklin Florida Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Florida Tax and Smallcap 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 Smallcap Growth Fund are associated (or correlated) with Franklin Florida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Florida Tax has no effect on the direction of Smallcap Growth i.e., Smallcap Growth and Franklin Florida go up and down completely randomly.
Pair Corralation between Smallcap Growth and Franklin Florida
If you would invest 1,611 in Smallcap Growth Fund on August 30, 2024 and sell it today you would earn a total of 116.00 from holding Smallcap Growth Fund or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Smallcap Growth Fund vs. Franklin Florida Tax Free
Performance |
| Timeline |
| Smallcap Growth |
| Franklin Florida Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Smallcap Growth and Franklin Florida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smallcap Growth and Franklin Florida
The main advantage of trading using opposite Smallcap Growth and Franklin Florida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Growth position performs unexpectedly, Franklin Florida 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 Florida will offset losses from the drop in Franklin Florida's long position.| Smallcap Growth vs. Vanguard Equity Income | Smallcap Growth vs. Alternative Asset Allocation | Smallcap Growth vs. Enhanced Large Pany | Smallcap Growth vs. Fundamental Large Cap |
| Franklin Florida vs. Vanguard Short Term Federal | Franklin Florida vs. Siit Ultra Short | Franklin Florida vs. Sterling Capital Short | Franklin Florida vs. Touchstone Ultra Short |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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