Correlation Between Century Aluminum and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Century Aluminum and Franklin Credit 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 Century Aluminum and Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Aluminum and Franklin Credit Management, you can compare the effects of market volatilities on Century Aluminum and Franklin Credit 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 Century Aluminum with a short position of Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Aluminum and Franklin Credit.
Diversification Opportunities for Century Aluminum and Franklin Credit
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Century and Franklin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Century Aluminum and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana and Century Aluminum 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 Century Aluminum are associated (or correlated) with Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Century Aluminum i.e., Century Aluminum and Franklin Credit go up and down completely randomly.
Pair Corralation between Century Aluminum and Franklin Credit
If you would invest 11.00 in Franklin Credit Management on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Credit Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Century Aluminum vs. Franklin Credit Management
Performance |
| Timeline |
| Century Aluminum |
| Franklin Credit Mana |
Century Aluminum and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Aluminum and Franklin Credit
The main advantage of trading using opposite Century Aluminum and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Aluminum position performs unexpectedly, Franklin Credit 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 Credit will offset losses from the drop in Franklin Credit's long position.| Century Aluminum vs. Aquagold International | Century Aluminum vs. Alibaba Group Holding | Century Aluminum vs. Banco Bradesco SA | Century Aluminum vs. HP Inc |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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