Correlation Between Franklin Credit and Nukkleus
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Nukkleus 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 Nukkleus 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 Nukkleus, you can compare the effects of market volatilities on Franklin Credit and Nukkleus 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 Nukkleus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Nukkleus.
Diversification Opportunities for Franklin Credit and Nukkleus
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Nukkleus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Nukkleus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nukkleus 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 Nukkleus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nukkleus has no effect on the direction of Franklin Credit i.e., Franklin Credit and Nukkleus go up and down completely randomly.
Pair Corralation between Franklin Credit and Nukkleus
Given the investment horizon of 90 days Franklin Credit is expected to generate 7.01 times less return on investment than Nukkleus. But when comparing it to its historical volatility, Franklin Credit Management is 8.32 times less risky than Nukkleus. It trades about 0.15 of its potential returns per unit of risk. Nukkleus is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3.01 in Nukkleus on November 2, 2024 and sell it today you would earn a total of 17.99 from holding Nukkleus or generate 597.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Credit Management vs. Nukkleus
Performance |
| Timeline |
| Franklin Credit Mana |
| Nukkleus |
Franklin Credit and Nukkleus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Nukkleus
The main advantage of trading using opposite Franklin Credit and Nukkleus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Nukkleus 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 Nukkleus will offset losses from the drop in Nukkleus' long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| Nukkleus vs. Copperbank Resources Corp | Nukkleus vs. Insteel Industries | Nukkleus vs. Highway Holdings Limited | Nukkleus vs. Barrick Gold Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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