Correlation Between Franklin Credit and Payoneer Global
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Payoneer Global 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 Payoneer Global 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 Payoneer Global, you can compare the effects of market volatilities on Franklin Credit and Payoneer Global 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 Payoneer Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Payoneer Global.
Diversification Opportunities for Franklin Credit and Payoneer Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Payoneer is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Franklin Credit i.e., Franklin Credit and Payoneer Global go up and down completely randomly.
Pair Corralation between Franklin Credit and Payoneer Global
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 4.86 times more return on investment than Payoneer Global. However, Franklin Credit is 4.86 times more volatile than Payoneer Global. It trades about 0.04 of its potential returns per unit of risk. Payoneer Global is currently generating about 0.07 per unit of risk. If you would invest 30.00 in Franklin Credit Management on September 12, 2024 and sell it today you would lose (19.00) from holding Franklin Credit Management or give up 63.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Franklin Credit Management vs. Payoneer Global
Performance |
| Timeline |
| Franklin Credit Mana |
| Payoneer Global |
Franklin Credit and Payoneer Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Payoneer Global
The main advantage of trading using opposite Franklin Credit and Payoneer Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Payoneer Global 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 Payoneer Global will offset losses from the drop in Payoneer Global's long position.| Franklin Credit vs. Freedom Bank of | Franklin Credit vs. HUMANA INC | Franklin Credit vs. Barloworld Ltd ADR | Franklin Credit vs. Morningstar Unconstrained Allocation |
| Payoneer Global vs. SentinelOne | Payoneer Global vs. CyberArk Software | Payoneer Global vs. MongoDB | Payoneer Global vs. Appian 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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