Correlation Between Franklin Credit and 47233JDK1
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By analyzing existing cross correlation between Franklin Credit Management and US47233JDK16, you can compare the effects of market volatilities on Franklin Credit and 47233JDK1 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 47233JDK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and 47233JDK1.
Diversification Opportunities for Franklin Credit and 47233JDK1
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and 47233JDK1 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and US47233JDK16 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US47233JDK16 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 47233JDK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US47233JDK16 has no effect on the direction of Franklin Credit i.e., Franklin Credit and 47233JDK1 go up and down completely randomly.
Pair Corralation between Franklin Credit and 47233JDK1
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 4.35 times more return on investment than 47233JDK1. However, Franklin Credit is 4.35 times more volatile than US47233JDK16. It trades about 0.05 of its potential returns per unit of risk. US47233JDK16 is currently generating about 0.04 per unit of risk. If you would invest 10.00 in Franklin Credit Management on September 12, 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 Together |
| Strength | Weak |
| Accuracy | 44.94% |
| Values | Daily Returns |
Franklin Credit Management vs. US47233JDK16
Performance |
| Timeline |
| Franklin Credit Mana |
| US47233JDK16 |
Franklin Credit and 47233JDK1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and 47233JDK1
The main advantage of trading using opposite Franklin Credit and 47233JDK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, 47233JDK1 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 47233JDK1 will offset losses from the drop in 47233JDK1'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 |
| 47233JDK1 vs. NETGEAR | 47233JDK1 vs. Lipocine | 47233JDK1 vs. Franklin Credit Management | 47233JDK1 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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