Correlation Between Guggenheim Long and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Guggenheim Long and Franklin Federal 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 Guggenheim Long and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Long Short and Franklin Federal Tax Free, you can compare the effects of market volatilities on Guggenheim Long and Franklin Federal 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 Guggenheim Long with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Long and Franklin Federal.
Diversification Opportunities for Guggenheim Long and Franklin Federal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GUGGENHEIM and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Long Short and Franklin Federal Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Tax and Guggenheim Long 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 Guggenheim Long Short are associated (or correlated) with Franklin Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Federal Tax has no effect on the direction of Guggenheim Long i.e., Guggenheim Long and Franklin Federal go up and down completely randomly.
Pair Corralation between Guggenheim Long and Franklin Federal
If you would invest 1,083 in Franklin Federal Tax Free on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Franklin Federal Tax Free or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guggenheim Long Short vs. Franklin Federal Tax Free
Performance |
| Timeline |
| Guggenheim Long Short |
| Franklin Federal Tax |
Guggenheim Long and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Long and Franklin Federal
The main advantage of trading using opposite Guggenheim Long and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Long position performs unexpectedly, Franklin Federal 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 Federal will offset losses from the drop in Franklin Federal's long position.| Guggenheim Long vs. Nationwide Small Cap | Guggenheim Long vs. Kinetics Small Cap | Guggenheim Long vs. The Hartford Small | Guggenheim Long vs. Ancorathelen Small Mid Cap |
| Franklin Federal vs. Guggenheim Long Short | Franklin Federal vs. Quantitative Longshort Equity | Franklin Federal vs. Rbc Short Duration | Franklin Federal vs. Locorr Longshort Modities |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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