Correlation Between Franklin Wireless and Goldenstone Acquisition
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Goldenstone Acquisition 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 Goldenstone Acquisition 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 Goldenstone Acquisition Limited, you can compare the effects of market volatilities on Franklin Wireless and Goldenstone Acquisition 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 Goldenstone Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Goldenstone Acquisition.
Diversification Opportunities for Franklin Wireless and Goldenstone Acquisition
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Goldenstone is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Goldenstone Acquisition Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldenstone Acquisition 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 Goldenstone Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldenstone Acquisition has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Goldenstone Acquisition go up and down completely randomly.
Pair Corralation between Franklin Wireless and Goldenstone Acquisition
Given the investment horizon of 90 days Franklin Wireless is expected to generate 321.46 times less return on investment than Goldenstone Acquisition. But when comparing it to its historical volatility, Franklin Wireless Corp is 58.48 times less risky than Goldenstone Acquisition. It trades about 0.03 of its potential returns per unit of risk. Goldenstone Acquisition Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1.30 in Goldenstone Acquisition Limited on August 27, 2024 and sell it today you would earn a total of 2.21 from holding Goldenstone Acquisition Limited or generate 170.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 40.52% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Goldenstone Acquisition Limite
Performance |
| Timeline |
| Franklin Wireless Corp |
| Goldenstone Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Franklin Wireless and Goldenstone Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Goldenstone Acquisition
The main advantage of trading using opposite Franklin Wireless and Goldenstone Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Goldenstone Acquisition 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 Goldenstone Acquisition will offset losses from the drop in Goldenstone Acquisition's 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 |
| Goldenstone Acquisition vs. PowerUp Acquisition Corp | Goldenstone Acquisition vs. Aurora Innovation | Goldenstone Acquisition vs. HUMANA INC | Goldenstone Acquisition vs. Aquagold International |
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 Stocks Directory module to find actively traded stocks across global markets.
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