Correlation Between Franklin Wireless and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Kingdee International 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 Kingdee International 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 Kingdee International Software, you can compare the effects of market volatilities on Franklin Wireless and Kingdee International 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 Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Kingdee International.
Diversification Opportunities for Franklin Wireless and Kingdee International
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Kingdee is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International 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 Kingdee International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingdee International has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Kingdee International go up and down completely randomly.
Pair Corralation between Franklin Wireless and Kingdee International
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 2.36 times more return on investment than Kingdee International. However, Franklin Wireless is 2.36 times more volatile than Kingdee International Software. It trades about 0.24 of its potential returns per unit of risk. Kingdee International Software is currently generating about -0.16 per unit of risk. If you would invest 430.00 in Franklin Wireless Corp on October 30, 2024 and sell it today you would earn a total of 90.00 from holding Franklin Wireless Corp or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.68% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Kingdee International Software
Performance |
| Timeline |
| Franklin Wireless Corp |
| Kingdee International |
Franklin Wireless and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Kingdee International
The main advantage of trading using opposite Franklin Wireless and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Kingdee International 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 Kingdee International will offset losses from the drop in Kingdee International's long position.| Franklin Wireless vs. Comtech Telecommunications Corp | Franklin Wireless vs. KVH Industries | Franklin Wireless vs. Silicom | Franklin Wireless vs. Knowles Cor |
| Kingdee International vs. Shake Shack | Kingdee International vs. Kaiser Aluminum | Kingdee International vs. First Watch Restaurant | Kingdee International vs. McDonalds |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |