Correlation Between Franklin Wireless and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Summit Environmental 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 Summit Environmental 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 Summit Environmental, you can compare the effects of market volatilities on Franklin Wireless and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Summit Environmental.
Diversification Opportunities for Franklin Wireless and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Summit Environmental go up and down completely randomly.
Pair Corralation between Franklin Wireless and Summit Environmental
If you would invest 430.00 in Franklin Wireless Corp on October 30, 2024 and sell it today you would earn a total of 90.00 from holding Franklin Wireless Corp or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Wireless Corp vs. Summit Environmental
Performance |
| Timeline |
| Franklin Wireless Corp |
| Summit Environmental |
Franklin Wireless and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Summit Environmental
The main advantage of trading using opposite Franklin Wireless and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental's long position.| Franklin Wireless vs. Comtech Telecommunications Corp | Franklin Wireless vs. KVH Industries | Franklin Wireless vs. Silicom | Franklin Wireless vs. Knowles Cor |
| Summit Environmental vs. LENSAR Inc | Summit Environmental vs. Cardinal Health | Summit Environmental vs. National Vision Holdings | Summit Environmental vs. Dave Busters Entertainment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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