Correlation Between Franklin Credit and EATON
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By analyzing existing cross correlation between Franklin Credit Management and EATON VANCE P, you can compare the effects of market volatilities on Franklin Credit and EATON 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 EATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and EATON.
Diversification Opportunities for Franklin Credit and EATON
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and EATON is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and EATON VANCE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EATON VANCE 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 EATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EATON VANCE P has no effect on the direction of Franklin Credit i.e., Franklin Credit and EATON go up and down completely randomly.
Pair Corralation between Franklin Credit and EATON
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 23.47 times more return on investment than EATON. However, Franklin Credit is 23.47 times more volatile than EATON VANCE P. It trades about 0.04 of its potential returns per unit of risk. EATON VANCE P is currently generating about 0.01 per unit of risk. If you would invest 25.00 in Franklin Credit Management on November 30, 2024 and sell it today you would lose (15.00) from holding Franklin Credit Management or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 74.09% |
| Values | Daily Returns |
Franklin Credit Management vs. EATON VANCE P
Performance |
| Timeline |
| Franklin Credit Mana |
| EATON VANCE P |
Franklin Credit and EATON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and EATON
The main advantage of trading using opposite Franklin Credit and EATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, EATON 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 EATON will offset losses from the drop in EATON's long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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