Correlation Between Franklin Credit and Planet Image
Can any of the company-specific risk be diversified away by investing in both Franklin Credit and Planet Image 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 Planet Image 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 Planet Image International, you can compare the effects of market volatilities on Franklin Credit and Planet Image 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 Planet Image. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Credit and Planet Image.
Diversification Opportunities for Franklin Credit and Planet Image
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Planet is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and Planet Image International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Image Interna 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 Planet Image. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Image Interna has no effect on the direction of Franklin Credit i.e., Franklin Credit and Planet Image go up and down completely randomly.
Pair Corralation between Franklin Credit and Planet Image
Given the investment horizon of 90 days Franklin Credit is expected to generate 1.24 times less return on investment than Planet Image. In addition to that, Franklin Credit is 1.41 times more volatile than Planet Image International. It trades about 0.03 of its total potential returns per unit of risk. Planet Image International is currently generating about 0.06 per unit of volatility. If you would invest 279.00 in Planet Image International on September 12, 2024 and sell it today you would earn a total of 117.00 from holding Planet Image International or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.14% |
| Values | Daily Returns |
Franklin Credit Management vs. Planet Image International
Performance |
| Timeline |
| Franklin Credit Mana |
| Planet Image Interna |
Franklin Credit and Planet Image Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Credit and Planet Image
The main advantage of trading using opposite Franklin Credit and Planet Image positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Credit position performs unexpectedly, Planet Image 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 Planet Image will offset losses from the drop in Planet Image'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 |
| Planet Image vs. ServiceNow | Planet Image vs. Red Branch Technologies | Planet Image vs. AMCON Distributing | Planet Image vs. Evertz Technologies Limited |
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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