Correlation Between Lion One and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both Lion One and Franklin Wireless 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 Lion One and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Franklin Wireless Corp, you can compare the effects of market volatilities on Lion One and Franklin Wireless 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 Lion One with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Franklin Wireless.
Diversification Opportunities for Lion One and Franklin Wireless
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lion and Franklin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Franklin Wireless Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Wireless Corp and Lion One 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 Lion One Metals are associated (or correlated) with Franklin Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Wireless Corp has no effect on the direction of Lion One i.e., Lion One and Franklin Wireless go up and down completely randomly.
Pair Corralation between Lion One and Franklin Wireless
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Franklin Wireless. In addition to that, Lion One is 1.7 times more volatile than Franklin Wireless Corp. It trades about -0.19 of its total potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.06 per unit of volatility. If you would invest 422.00 in Franklin Wireless Corp on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Franklin Wireless Corp or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Franklin Wireless Corp
Performance |
| Timeline |
| Lion One Metals |
| Franklin Wireless Corp |
Lion One and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Franklin Wireless
The main advantage of trading using opposite Lion One and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One position performs unexpectedly, Franklin Wireless 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 Franklin Wireless will offset losses from the drop in Franklin Wireless' long position.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| Franklin Wireless vs. Wialan Technologies | Franklin Wireless vs. TPT Global Tech | Franklin Wireless vs. Moving iMage Technologies | Franklin Wireless vs. Comtech Telecommunications Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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