Correlation Between Franklin Wireless and Metalink
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Metalink 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 Metalink 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 Metalink, you can compare the effects of market volatilities on Franklin Wireless and Metalink 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 Metalink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Metalink.
Diversification Opportunities for Franklin Wireless and Metalink
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Franklin and Metalink is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Metalink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalink 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 Metalink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalink has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Metalink go up and down completely randomly.
Pair Corralation between Franklin Wireless and Metalink
Given the investment horizon of 90 days Franklin Wireless is expected to generate 1.21 times less return on investment than Metalink. In addition to that, Franklin Wireless is 2.18 times more volatile than Metalink. It trades about 0.06 of its total potential returns per unit of risk. Metalink is currently generating about 0.16 per unit of volatility. If you would invest 39.00 in Metalink on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Metalink or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Metalink
Performance |
| Timeline |
| Franklin Wireless Corp |
| Metalink |
Franklin Wireless and Metalink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Metalink
The main advantage of trading using opposite Franklin Wireless and Metalink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Metalink 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 Metalink will offset losses from the drop in Metalink'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 |
| Metalink vs. JD Sports Fashion | Metalink vs. Eastman Kodak Co | Metalink vs. Old Dominion Freight | Metalink vs. Stepan Company |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |