Correlation Between Franklin Wireless and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Marti Technologies 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 Marti Technologies 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 Marti Technologies, you can compare the effects of market volatilities on Franklin Wireless and Marti Technologies 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Marti Technologies.
Diversification Opportunities for Franklin Wireless and Marti Technologies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Marti is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Marti Technologies go up and down completely randomly.
Pair Corralation between Franklin Wireless and Marti Technologies
Given the investment horizon of 90 days Franklin Wireless is expected to generate 6.34 times less return on investment than Marti Technologies. But when comparing it to its historical volatility, Franklin Wireless Corp is 2.5 times less risky than Marti Technologies. It trades about 0.06 of its potential returns per unit of risk. Marti Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Marti Technologies on September 2, 2024 and sell it today you would earn a total of 121.00 from holding Marti Technologies or generate 54.75% 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. Marti Technologies
Performance |
| Timeline |
| Franklin Wireless Corp |
| Marti Technologies |
Franklin Wireless and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Marti Technologies
The main advantage of trading using opposite Franklin Wireless and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' 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 |
| Marti Technologies vs. Keurig Dr Pepper | Marti Technologies vs. Ambev SA ADR | Marti Technologies vs. Molson Coors Brewing | Marti Technologies vs. PennantPark Floating Rate |
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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