Correlation Between Franklin Credit and F3 Uranium
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and F3 Uranium 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 F3 Uranium 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 F3 Uranium Corp, you can compare the effects of market volatilities on Franklin Credit and F3 Uranium 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 F3 Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and F3 Uranium.
Diversification Opportunities for Franklin Credit and F3 Uranium
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and FUUFF is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and F3 Uranium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F3 Uranium Corp 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 F3 Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F3 Uranium Corp has no effect on the direction of Franklin Credit i.e., Franklin Credit and F3 Uranium go up and down completely randomly.
Pair Corralation between Franklin Credit and F3 Uranium
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 4.46 times more return on investment than F3 Uranium. However, Franklin Credit is 4.46 times more volatile than F3 Uranium Corp. It trades about -0.04 of its potential returns per unit of risk. F3 Uranium Corp is currently generating about -0.22 per unit of risk. If you would invest 17.00 in Franklin Credit Management on November 27, 2024 and sell it today you would lose (7.00) from holding Franklin Credit Management or give up 41.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Franklin Credit Management vs. F3 Uranium Corp
Performance |
| Timeline |
| Franklin Credit Mana |
| F3 Uranium Corp |
Franklin Credit and F3 Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and F3 Uranium
The main advantage of trading using opposite Franklin Credit and F3 Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, F3 Uranium 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 F3 Uranium will offset losses from the drop in F3 Uranium's long position.| Franklin Credit vs. Ares Dynamic Credit | Franklin Credit vs. PGIM Short Duration | Franklin Credit vs. Ecofin Sustainable And | Franklin Credit vs. Aberdeen Total Dynamic |
| F3 Uranium vs. Wizz Air Holdings | F3 Uranium vs. Delek Logistics Partners | F3 Uranium vs. United Airlines Holdings | F3 Uranium vs. Delta Air Lines |
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 Stocks Directory module to find actively traded stocks across global markets.
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