Correlation Between Franklin Wireless and Postal Realty
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Postal Realty 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 Postal Realty 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 Postal Realty Trust, you can compare the effects of market volatilities on Franklin Wireless and Postal Realty 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 Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Postal Realty.
Diversification Opportunities for Franklin Wireless and Postal Realty
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Franklin and Postal is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Postal Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Realty Trust 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 Postal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Realty Trust has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Postal Realty go up and down completely randomly.
Pair Corralation between Franklin Wireless and Postal Realty
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 1.52 times more return on investment than Postal Realty. However, Franklin Wireless is 1.52 times more volatile than Postal Realty Trust. It trades about 0.13 of its potential returns per unit of risk. Postal Realty Trust is currently generating about -0.03 per unit of risk. If you would invest 410.00 in Franklin Wireless Corp on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Franklin Wireless Corp or generate 4.88% 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. Postal Realty Trust
Performance |
| Timeline |
| Franklin Wireless Corp |
| Postal Realty Trust |
Franklin Wireless and Postal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Postal Realty
The main advantage of trading using opposite Franklin Wireless and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Postal Realty 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 Postal Realty will offset losses from the drop in Postal Realty'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 |
| Postal Realty vs. Douglas Emmett | Postal Realty vs. Kilroy Realty Corp | Postal Realty vs. Alexandria Real Estate | Postal Realty vs. Vornado Realty Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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