Correlation Between Franklin Credit and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Franklin Credit and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Proficient Auto.
Diversification Opportunities for Franklin Credit and Proficient Auto
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Franklin and Proficient is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Franklin Credit i.e., Franklin Credit and Proficient Auto go up and down completely randomly.
Pair Corralation between Franklin Credit and Proficient Auto
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 3.83 times more return on investment than Proficient Auto. However, Franklin Credit is 3.83 times more volatile than Proficient Auto Logistics,. It trades about 0.04 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.05 per unit of risk. If you would invest 20.00 in Franklin Credit Management on August 31, 2024 and sell it today you would lose (9.00) from holding Franklin Credit Management or give up 45.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 38.34% |
| Values | Daily Returns |
Franklin Credit Management vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Franklin Credit Mana |
| Proficient Auto Logi |
Franklin Credit and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Proficient Auto
The main advantage of trading using opposite Franklin Credit and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Franklin Credit vs. HUMANA INC | Franklin Credit vs. SCOR PK | Franklin Credit vs. Aquagold International | Franklin Credit vs. Thrivent High Yield |
| Proficient Auto vs. CDW Corp | Proficient Auto vs. Asure Software | Proficient Auto vs. Electrovaya Common Shares | Proficient Auto vs. Hurco Companies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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