Correlation Between Acco Brands and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both Acco Brands and Franklin Wireless 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 Acco Brands and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acco Brands and Franklin Wireless Corp, you can compare the effects of market volatilities on Acco Brands and Franklin Wireless 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 Acco Brands with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acco Brands and Franklin Wireless.
Diversification Opportunities for Acco Brands and Franklin Wireless
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acco and Franklin is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Acco Brands and Franklin Wireless Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Wireless Corp and Acco Brands 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 Acco Brands are associated (or correlated) with Franklin Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Wireless Corp has no effect on the direction of Acco Brands i.e., Acco Brands and Franklin Wireless go up and down completely randomly.
Pair Corralation between Acco Brands and Franklin Wireless
Given the investment horizon of 90 days Acco Brands is expected to under-perform the Franklin Wireless. In addition to that, Acco Brands is 1.03 times more volatile than Franklin Wireless Corp. It trades about -0.2 of its total potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.33 per unit of volatility. If you would invest 520.00 in Franklin Wireless Corp on November 27, 2024 and sell it today you would earn a total of 159.00 from holding Franklin Wireless Corp or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acco Brands vs. Franklin Wireless Corp
Performance |
| Timeline |
| Acco Brands |
| Franklin Wireless Corp |
Acco Brands and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acco Brands and Franklin Wireless
The main advantage of trading using opposite Acco Brands and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acco Brands position performs unexpectedly, Franklin Wireless 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 Wireless will offset losses from the drop in Franklin Wireless' long position.| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
| Franklin Wireless vs. Wialan Technologies | Franklin Wireless vs. TPT Global Tech | Franklin Wireless vs. Moving iMage Technologies | Franklin Wireless vs. Comtech Telecommunications Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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