Correlation Between Franklin Covey and Quad Graphics
Can any of the company-specific risk be diversified away by investing in both Franklin Covey and Quad Graphics 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 Franklin Covey and Quad Graphics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Covey and Quad Graphics, you can compare the effects of market volatilities on Franklin Covey and Quad Graphics 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 Franklin Covey with a short position of Quad Graphics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Covey and Quad Graphics.
Diversification Opportunities for Franklin Covey and Quad Graphics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Quad is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Covey and Quad Graphics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quad Graphics and Franklin Covey 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 Franklin Covey are associated (or correlated) with Quad Graphics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quad Graphics has no effect on the direction of Franklin Covey i.e., Franklin Covey and Quad Graphics go up and down completely randomly.
Pair Corralation between Franklin Covey and Quad Graphics
Allowing for the 90-day total investment horizon Franklin Covey is expected to under-perform the Quad Graphics. But the stock apears to be less risky and, when comparing its historical volatility, Franklin Covey is 1.21 times less risky than Quad Graphics. The stock trades about -0.08 of its potential returns per unit of risk. The Quad Graphics is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Quad Graphics on August 28, 2024 and sell it today you would earn a total of 197.00 from holding Quad Graphics or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Covey vs. Quad Graphics
Performance |
| Timeline |
| Franklin Covey |
| Quad Graphics |
Franklin Covey and Quad Graphics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Covey and Quad Graphics
The main advantage of trading using opposite Franklin Covey and Quad Graphics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Covey position performs unexpectedly, Quad Graphics 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 Quad Graphics will offset losses from the drop in Quad Graphics' long position.| Franklin Covey vs. CRA International | Franklin Covey vs. Thermon Group Holdings | Franklin Covey vs. Forrester Research | Franklin Covey vs. Forestar Group |
| Quad Graphics vs. Maximus | Quad Graphics vs. CBIZ Inc | Quad Graphics vs. First Advantage Corp | Quad Graphics vs. Network 1 Technologies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |