Correlation Between Franklin Credit and WESCO
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By analyzing existing cross correlation between Franklin Credit Management and WESCO Distribution 725, you can compare the effects of market volatilities on Franklin Credit and WESCO 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 WESCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and WESCO.
Diversification Opportunities for Franklin Credit and WESCO
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and WESCO is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and WESCO Distribution 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESCO Distribution 725 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 WESCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESCO Distribution 725 has no effect on the direction of Franklin Credit i.e., Franklin Credit and WESCO go up and down completely randomly.
Pair Corralation between Franklin Credit and WESCO
Given the investment horizon of 90 days Franklin Credit Management is expected to generate 63.21 times more return on investment than WESCO. However, Franklin Credit is 63.21 times more volatile than WESCO Distribution 725. It trades about 0.24 of its potential returns per unit of risk. WESCO Distribution 725 is currently generating about 0.07 per unit of risk. If you would invest 11.00 in Franklin Credit Management on October 25, 2024 and sell it today you would earn a total of 6.00 from holding Franklin Credit Management or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Franklin Credit Management vs. WESCO Distribution 725
Performance |
| Timeline |
| Franklin Credit Mana |
| WESCO Distribution 725 |
Franklin Credit and WESCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and WESCO
The main advantage of trading using opposite Franklin Credit and WESCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, WESCO 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 WESCO will offset losses from the drop in WESCO's long position.| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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