Correlation Between Franklin Credit and Logan Ridge
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Logan Ridge 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 Logan Ridge 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 Logan Ridge Finance, you can compare the effects of market volatilities on Franklin Credit and Logan Ridge 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 Logan Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Logan Ridge.
Diversification Opportunities for Franklin Credit and Logan Ridge
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Franklin and Logan is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Logan Ridge Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logan Ridge Finance 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 Logan Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logan Ridge Finance has no effect on the direction of Franklin Credit i.e., Franklin Credit and Logan Ridge go up and down completely randomly.
Pair Corralation between Franklin Credit and Logan Ridge
If you would invest 11.00 in Franklin Credit Management on October 20, 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 |
Franklin Credit Management vs. Logan Ridge Finance
Performance |
| Timeline |
| Franklin Credit Mana |
| Logan Ridge Finance |
Franklin Credit and Logan Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Logan Ridge
The main advantage of trading using opposite Franklin Credit and Logan Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Logan Ridge 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 Logan Ridge will offset losses from the drop in Logan Ridge's long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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