Correlation Between Franklin Wireless and East Resources
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and East Resources 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 East Resources 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 East Resources Acquisition, you can compare the effects of market volatilities on Franklin Wireless and East Resources 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 East Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and East Resources.
Diversification Opportunities for Franklin Wireless and East Resources
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and East is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and East Resources Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Resources Acqui 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 East Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Resources Acqui has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and East Resources go up and down completely randomly.
Pair Corralation between Franklin Wireless and East Resources
If you would invest 318.00 in Franklin Wireless Corp on September 12, 2024 and sell it today you would earn a total of 119.00 from holding Franklin Wireless Corp or generate 37.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Franklin Wireless Corp vs. East Resources Acquisition
Performance |
| Timeline |
| Franklin Wireless Corp |
| East Resources Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Wireless and East Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and East Resources
The main advantage of trading using opposite Franklin Wireless and East Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, East Resources 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 East Resources will offset losses from the drop in East Resources' long position.| Franklin Wireless vs. Wialan Technologies | Franklin Wireless vs. TPT Global Tech | Franklin Wireless vs. Moving iMage Technologies | Franklin Wireless vs. Comtech Telecommunications Corp |
| East Resources vs. Red Branch Technologies | East Resources vs. Amkor Technology | East Resources vs. Franklin Wireless Corp | East Resources vs. Pinterest |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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