Correlation Between Franklin Wireless and Oceantech Acquisitions
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Oceantech Acquisitions 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 Oceantech Acquisitions 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 Oceantech Acquisitions I, you can compare the effects of market volatilities on Franklin Wireless and Oceantech Acquisitions 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 Oceantech Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Oceantech Acquisitions.
Diversification Opportunities for Franklin Wireless and Oceantech Acquisitions
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Oceantech is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Oceantech Acquisitions I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceantech Acquisitions 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 Oceantech Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceantech Acquisitions has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Oceantech Acquisitions go up and down completely randomly.
Pair Corralation between Franklin Wireless and Oceantech Acquisitions
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 4.18 times more return on investment than Oceantech Acquisitions. However, Franklin Wireless is 4.18 times more volatile than Oceantech Acquisitions I. It trades about 0.01 of its potential returns per unit of risk. Oceantech Acquisitions I is currently generating about 0.05 per unit of risk. If you would invest 430.00 in Franklin Wireless Corp on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Wireless Corp or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.29% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Oceantech Acquisitions I
Performance |
| Timeline |
| Franklin Wireless Corp |
| Oceantech Acquisitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Franklin Wireless and Oceantech Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Oceantech Acquisitions
The main advantage of trading using opposite Franklin Wireless and Oceantech Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Oceantech Acquisitions 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 Oceantech Acquisitions will offset losses from the drop in Oceantech Acquisitions' 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 |
| Oceantech Acquisitions vs. Amkor Technology | Oceantech Acquisitions vs. Franklin Wireless Corp | Oceantech Acquisitions vs. Uber Technologies | Oceantech Acquisitions vs. Nyxoah |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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