Correlation Between Franklin Credit and Box Ships
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Box Ships 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 Box Ships 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 Box Ships, you can compare the effects of market volatilities on Franklin Credit and Box Ships 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 Box Ships. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Box Ships.
Diversification Opportunities for Franklin Credit and Box Ships
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Box is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Box Ships in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Box Ships 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 Box Ships. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Box Ships has no effect on the direction of Franklin Credit i.e., Franklin Credit and Box Ships go up and down completely randomly.
Pair Corralation between Franklin Credit and Box Ships
Given the investment horizon of 90 days Franklin Credit is expected to generate 12.34 times less return on investment than Box Ships. But when comparing it to its historical volatility, Franklin Credit Management is 7.25 times less risky than Box Ships. It trades about 0.05 of its potential returns per unit of risk. Box Ships is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Box Ships on September 2, 2024 and sell it today you would earn a total of 0.01 from holding Box Ships or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 53.63% |
| Values | Daily Returns |
Franklin Credit Management vs. Box Ships
Performance |
| Timeline |
| Franklin Credit Mana |
| Box Ships |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Credit and Box Ships Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Box Ships
The main advantage of trading using opposite Franklin Credit and Box Ships positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Box Ships 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 Box Ships will offset losses from the drop in Box Ships' long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| Box Ships vs. SEI Investments | Box Ships vs. LB Foster | Box Ships vs. Pool Corporation | Box Ships vs. Stepstone Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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