Correlation Between Franklin Wireless and Land Securities
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Land Securities 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 Land Securities 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 Land Securities Group, you can compare the effects of market volatilities on Franklin Wireless and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Land Securities.
Diversification Opportunities for Franklin Wireless and Land Securities
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Franklin and Land is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Land Securities go up and down completely randomly.
Pair Corralation between Franklin Wireless and Land Securities
Given the investment horizon of 90 days Franklin Wireless is expected to generate 4.14 times less return on investment than Land Securities. But when comparing it to its historical volatility, Franklin Wireless Corp is 1.81 times less risky than Land Securities. It trades about 0.01 of its potential returns per unit of risk. Land Securities Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 654.00 in Land Securities Group on September 14, 2024 and sell it today you would earn a total of 116.00 from holding Land Securities Group or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.77% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Land Securities Group
Performance |
| Timeline |
| Franklin Wireless Corp |
| Land Securities Group |
Franklin Wireless and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Land Securities
The main advantage of trading using opposite Franklin Wireless and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' long position.| Franklin Wireless vs. Passage Bio | Franklin Wireless vs. Black Diamond Therapeutics | Franklin Wireless vs. Alector | Franklin Wireless vs. Century Therapeutics |
| Land Securities vs. Franklin Wireless Corp | Land Securities vs. Nyxoah | Land Securities vs. AMCON Distributing | Land Securities vs. BBB Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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