Correlation Between CoreCivic and Franklin Covey
Can any of the company-specific risk be diversified away by investing in both CoreCivic and Franklin Covey 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 CoreCivic and Franklin Covey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCivic and Franklin Covey, you can compare the effects of market volatilities on CoreCivic and Franklin Covey 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 CoreCivic with a short position of Franklin Covey. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCivic and Franklin Covey.
Diversification Opportunities for CoreCivic and Franklin Covey
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CoreCivic and Franklin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CoreCivic and Franklin Covey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Covey and CoreCivic 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 CoreCivic are associated (or correlated) with Franklin Covey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Covey has no effect on the direction of CoreCivic i.e., CoreCivic and Franklin Covey go up and down completely randomly.
Pair Corralation between CoreCivic and Franklin Covey
Considering the 90-day investment horizon CoreCivic is expected to generate 2.13 times more return on investment than Franklin Covey. However, CoreCivic is 2.13 times more volatile than Franklin Covey. It trades about 0.27 of its potential returns per unit of risk. Franklin Covey is currently generating about -0.08 per unit of risk. If you would invest 1,460 in CoreCivic on August 30, 2024 and sell it today you would earn a total of 789.00 from holding CoreCivic or generate 54.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCivic vs. Franklin Covey
Performance |
| Timeline |
| CoreCivic |
| Franklin Covey |
CoreCivic and Franklin Covey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCivic and Franklin Covey
The main advantage of trading using opposite CoreCivic and Franklin Covey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCivic position performs unexpectedly, Franklin Covey 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 Covey will offset losses from the drop in Franklin Covey's long position.| CoreCivic vs. ADT Inc | CoreCivic vs. NL Industries | CoreCivic vs. Mistras Group | CoreCivic vs. Evolv Technologies Holdings |
| Franklin Covey vs. CRA International | Franklin Covey vs. Thermon Group Holdings | Franklin Covey vs. Forrester Research | Franklin Covey vs. Forestar Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |