Correlation Between Franklin Wireless and Universal Media
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Universal Media 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 Universal Media 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 Universal Media Group, you can compare the effects of market volatilities on Franklin Wireless and Universal Media 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 Universal Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Universal Media.
Diversification Opportunities for Franklin Wireless and Universal Media
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Universal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Universal Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Media Group 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 Universal Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Media Group has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Universal Media go up and down completely randomly.
Pair Corralation between Franklin Wireless and Universal Media
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 0.27 times more return on investment than Universal Media. However, Franklin Wireless Corp is 3.66 times less risky than Universal Media. It trades about 0.26 of its potential returns per unit of risk. Universal Media Group is currently generating about -0.36 per unit of risk. If you would invest 451.00 in Franklin Wireless Corp on October 25, 2024 and sell it today you would earn a total of 38.00 from holding Franklin Wireless Corp or generate 8.43% 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. Universal Media Group
Performance |
| Timeline |
| Franklin Wireless Corp |
| Universal Media Group |
Franklin Wireless and Universal Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Universal Media
The main advantage of trading using opposite Franklin Wireless and Universal Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Universal Media 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 Universal Media will offset losses from the drop in Universal Media'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 |
| Universal Media vs. Bassett Furniture Industries | Universal Media vs. DHI Group | Universal Media vs. Sprinklr | Universal Media vs. Taylor Morn Home |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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