Correlation Between Franklin Wireless and Wialan Technologies
Can any of the company-specific risk be diversified away by investing in both Franklin Wireless and Wialan Technologies 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 Wialan Technologies 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 Wialan Technologies, you can compare the effects of market volatilities on Franklin Wireless and Wialan Technologies 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 Wialan Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and Wialan Technologies.
Diversification Opportunities for Franklin Wireless and Wialan Technologies
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Wialan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and Wialan Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wialan Technologies 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 Wialan Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wialan Technologies has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and Wialan Technologies go up and down completely randomly.
Pair Corralation between Franklin Wireless and Wialan Technologies
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 0.22 times more return on investment than Wialan Technologies. However, Franklin Wireless Corp is 4.54 times less risky than Wialan Technologies. It trades about 0.16 of its potential returns per unit of risk. Wialan Technologies is currently generating about 0.02 per unit of risk. If you would invest 430.00 in Franklin Wireless Corp on November 3, 2024 and sell it today you would earn a total of 62.00 from holding Franklin Wireless Corp or generate 14.42% 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. Wialan Technologies
Performance |
| Timeline |
| Franklin Wireless Corp |
| Wialan Technologies |
Franklin Wireless and Wialan Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Wireless and Wialan Technologies
The main advantage of trading using opposite Franklin Wireless and Wialan Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, Wialan Technologies 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 Wialan Technologies will offset losses from the drop in Wialan Technologies' 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 |
| Wialan Technologies vs. Genesis Electronics Group | Wialan Technologies vs. Global Develpmts | Wialan Technologies vs. XCPCNL Business Services | Wialan Technologies vs. TonnerOne World Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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