Correlation Between Franklin Wireless and SEALSQ Corp
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and SEALSQ Corp 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 SEALSQ Corp 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 SEALSQ Corp, you can compare the effects of market volatilities on Franklin Wireless and SEALSQ Corp 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 SEALSQ Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and SEALSQ Corp.
Diversification Opportunities for Franklin Wireless and SEALSQ Corp
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and SEALSQ is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ Corp 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 SEALSQ Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALSQ Corp has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and SEALSQ Corp go up and down completely randomly.
Pair Corralation between Franklin Wireless and SEALSQ Corp
Given the investment horizon of 90 days Franklin Wireless is expected to generate 6.53 times less return on investment than SEALSQ Corp. But when comparing it to its historical volatility, Franklin Wireless Corp is 4.85 times less risky than SEALSQ Corp. It trades about 0.07 of its potential returns per unit of risk. SEALSQ Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 42.00 in SEALSQ Corp on August 28, 2024 and sell it today you would earn a total of 5.00 from holding SEALSQ Corp or generate 11.9% 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. SEALSQ Corp
Performance |
| Timeline |
| Franklin Wireless Corp |
| SEALSQ Corp |
Franklin Wireless and SEALSQ Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and SEALSQ Corp
The main advantage of trading using opposite Franklin Wireless and SEALSQ Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, SEALSQ Corp 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 SEALSQ Corp will offset losses from the drop in SEALSQ Corp'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 |
| SEALSQ Corp vs. Dalata Hotel Group | SEALSQ Corp vs. Playa Hotels Resorts | SEALSQ Corp vs. Virco Manufacturing | SEALSQ Corp vs. Franklin Wireless Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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