Correlation Between Icon Financial and Franklin Louisiana

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

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

Diversification Opportunities for Icon Financial and Franklin Louisiana

-0.58

Correlation Coefficient

Icon Financial  Franklin Louisiana

Excellent diversification

The 3 months correlation between Icon and Franklin is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Icon Financial Fund and Franklin Louisiana Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Louisiana Tax and Icon Financial 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 Icon Financial Fund are associated (or correlated) with Franklin Louisiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Louisiana Tax has no effect on the direction of Icon Financial i.e., Icon Financial and Franklin Louisiana go up and down completely randomly.

Pair Corralation between Icon Financial and Franklin Louisiana

Assuming the 90 days horizon Icon Financial Fund is expected to under-perform the Franklin Louisiana. In addition to that, Icon Financial is 8.88 times more volatile than Franklin Louisiana Tax Free. It trades about -0.15 of its total potential returns per unit of risk. Franklin Louisiana Tax Free is currently generating about 0.38 per unit of volatility. If you would invest  969.00  in Franklin Louisiana Tax Free on September 4, 2025 and sell it today you would earn a total of  41.00  from holding Franklin Louisiana Tax Free or generate 4.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Icon Financial Fund  vs.  Franklin Louisiana Tax Free

Icon Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Icon Financial Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Franklin Louisiana Tax

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Louisiana Tax Free are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Franklin Louisiana is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Icon Financial and Franklin Louisiana

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

The idea behind Icon Financial Fund and Franklin Louisiana 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.