Correlation Between Franklin Wireless and BeWhere Holdings
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and BeWhere Holdings 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 Wireless and BeWhere Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Wireless Corp and BeWhere Holdings, you can compare the effects of market volatilities on Franklin Wireless and BeWhere Holdings 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 Wireless with a short position of BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and BeWhere Holdings.
Diversification Opportunities for Franklin Wireless and BeWhere Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and BeWhere is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere Holdings and Franklin Wireless 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 Wireless Corp are associated (or correlated) with BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and BeWhere Holdings go up and down completely randomly.
Pair Corralation between Franklin Wireless and BeWhere Holdings
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 0.45 times more return on investment than BeWhere Holdings. However, Franklin Wireless Corp is 2.23 times less risky than BeWhere Holdings. It trades about 0.05 of its potential returns per unit of risk. BeWhere Holdings is currently generating about -0.04 per unit of risk. If you would invest 418.00 in Franklin Wireless Corp on August 25, 2024 and sell it today you would earn a total of 7.00 from holding Franklin Wireless Corp or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Wireless Corp vs. BeWhere Holdings
Performance |
| Timeline |
| Franklin Wireless Corp |
| BeWhere Holdings |
Franklin Wireless and BeWhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and BeWhere Holdings
The main advantage of trading using opposite Franklin Wireless and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, BeWhere Holdings 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 BeWhere Holdings will offset losses from the drop in BeWhere Holdings' long position.| Franklin Wireless vs. Lumentum Holdings | Franklin Wireless vs. Ichor Holdings | Franklin Wireless vs. Fabrinet | Franklin Wireless vs. Hello Group |
| BeWhere Holdings vs. Boxlight Corp Class | BeWhere Holdings vs. Siyata Mobile | BeWhere Holdings vs. ClearOne | BeWhere Holdings vs. Mobilicom Limited American |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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