Correlation Between Oberweis Emerging and Franklin Double

Can any of the company-specific risk be diversified away by investing in both Oberweis Emerging and Franklin Double 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 Oberweis Emerging and Franklin Double into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oberweis Emerging Growth and Franklin Double Tax Free, you can compare the effects of market volatilities on Oberweis Emerging and Franklin Double 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 Oberweis Emerging with a short position of Franklin Double. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oberweis Emerging and Franklin Double.

Diversification Opportunities for Oberweis Emerging and Franklin Double

0.0

Correlation Coefficient

Oberweis Emerging  Franklin Double

Pay attention - limited upside

The 3 months correlation between Oberweis and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oberweis Emerging Growth and Franklin Double Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Double Tax and Oberweis Emerging 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 Oberweis Emerging Growth are associated (or correlated) with Franklin Double. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Double Tax has no effect on the direction of Oberweis Emerging i.e., Oberweis Emerging and Franklin Double go up and down completely randomly.

Pair Corralation between Oberweis Emerging and Franklin Double

If you would invest  2,576  in Oberweis Emerging Growth on October 9, 2024 and sell it today you would earn a total of  508.00  from holding Oberweis Emerging Growth or generate 19.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Oberweis Emerging Growth  vs.  Franklin Double Tax Free

Oberweis Emerging Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oberweis Emerging Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Oberweis Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Franklin Double Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Franklin Double Tax Free has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Franklin Double is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oberweis Emerging and Franklin Double

The main advantage of trading using opposite Oberweis Emerging and Franklin Double positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oberweis Emerging position performs unexpectedly, Franklin Double 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 Double will offset losses from the drop in Franklin Double's long position.

The idea behind Oberweis Emerging Growth and Franklin Double Tax Free pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.