Correlation Between Franklin Credit and FS KKR
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and FS KKR 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 Credit and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Credit Management and FS KKR Capital, you can compare the effects of market volatilities on Franklin Credit and FS KKR 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 Credit with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and FS KKR.
Diversification Opportunities for Franklin Credit and FS KKR
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and FSK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital and Franklin Credit 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 Credit Management are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Franklin Credit i.e., Franklin Credit and FS KKR go up and down completely randomly.
Pair Corralation between Franklin Credit and FS KKR
If you would invest 2,086 in FS KKR Capital on October 20, 2024 and sell it today you would earn a total of 140.00 from holding FS KKR Capital or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Credit Management vs. FS KKR Capital
Performance |
| Timeline |
| Franklin Credit Mana |
| FS KKR Capital |
Franklin Credit and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and FS KKR
The main advantage of trading using opposite Franklin Credit and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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