Correlation Between Nuveen Short and Franklin Federal
Can any of the company-specific risk be diversified away by investing in both Nuveen Short 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 Nuveen Short and Franklin Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Short Term and Franklin Federal Limited Term, you can compare the effects of market volatilities on Nuveen Short 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 Nuveen Short with a short position of Franklin Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Short and Franklin Federal.
Diversification Opportunities for Nuveen Short and Franklin Federal
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Nuveen and Franklin is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Short Term and Franklin Federal Limited Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Federal Lim and Nuveen Short 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 Short Term 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 Lim has no effect on the direction of Nuveen Short i.e., Nuveen Short and Franklin Federal go up and down completely randomly.
Pair Corralation between Nuveen Short and Franklin Federal
Assuming the 90 days horizon Nuveen Short is expected to generate 1.3 times less return on investment than Franklin Federal. But when comparing it to its historical volatility, Nuveen Short Term is 1.07 times less risky than Franklin Federal. It trades about 0.31 of its potential returns per unit of risk. Franklin Federal Limited Term is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Franklin Federal Limited Term on May 26, 2025 and sell it today you would earn a total of 19.00 from holding Franklin Federal Limited Term or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Short Term vs. Franklin Federal Limited Term
Performance |
| Timeline |
| Nuveen Short Term |
| Franklin Federal Lim |
Nuveen Short and Franklin Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Short and Franklin Federal
The main advantage of trading using opposite Nuveen Short and Franklin Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Short 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.| Nuveen Short vs. Enhanced Fixed Income | Nuveen Short vs. Franklin Equity Income | Nuveen Short vs. Gmo Global Equity | Nuveen Short vs. Doubleline Core Fixed |
| Franklin Federal vs. Cmg Ultra Short | Franklin Federal vs. Prudential Short Duration | Franklin Federal vs. American Funds Tax Exempt | Franklin Federal vs. Western Asset 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |