Correlation Between Franklin Credit and BLACK
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By analyzing existing cross correlation between Franklin Credit Management and BLACK HILLS P, you can compare the effects of market volatilities on Franklin Credit and BLACK 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 BLACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and BLACK.
Diversification Opportunities for Franklin Credit and BLACK
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and BLACK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and BLACK HILLS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACK HILLS P 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 BLACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACK HILLS P has no effect on the direction of Franklin Credit i.e., Franklin Credit and BLACK go up and down completely randomly.
Pair Corralation between Franklin Credit and BLACK
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 7.35 times more return on investment than BLACK. However, Franklin Credit is 7.35 times more volatile than BLACK HILLS P. It trades about 0.06 of its potential returns per unit of risk. BLACK HILLS P is currently generating about -0.05 per unit of risk. If you would invest 10.00 in Franklin Credit Management on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Credit Management or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
Franklin Credit Management vs. BLACK HILLS P
Performance |
| Timeline |
| Franklin Credit Mana |
| BLACK HILLS P |
Franklin Credit and BLACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and BLACK
The main advantage of trading using opposite Franklin Credit and BLACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, BLACK 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 BLACK will offset losses from the drop in BLACK's long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
| BLACK vs. Weibo Corp | BLACK vs. Iridium Communications | BLACK vs. Radcom | BLACK vs. Franklin Credit Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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