Correlation Between Freedom Bank and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and Franklin Credit 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 Freedom Bank and Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Bank of and Franklin Credit Management, you can compare the effects of market volatilities on Freedom Bank and Franklin Credit 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 Freedom Bank with a short position of Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and Franklin Credit.
Diversification Opportunities for Freedom Bank and Franklin Credit
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Freedom and Franklin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana and Freedom Bank 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 Freedom Bank of are associated (or correlated) with Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of Freedom Bank i.e., Freedom Bank and Franklin Credit go up and down completely randomly.
Pair Corralation between Freedom Bank and Franklin Credit
If you would invest 11.00 in Franklin Credit Management on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Credit Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Bank of vs. Franklin Credit Management
Performance |
| Timeline |
| Freedom Bank |
| Franklin Credit Mana |
Freedom Bank and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and Franklin Credit
The main advantage of trading using opposite Freedom Bank and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, Franklin Credit 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 Franklin Credit will offset losses from the drop in Franklin Credit's long position.| Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Bank of Idaho |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |