Correlation Between NH Foods and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both NH Foods and Franklin Credit 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 NH Foods and Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Franklin Credit Management, you can compare the effects of market volatilities on NH Foods and Franklin Credit 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 NH Foods with a short position of Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Franklin Credit.
Diversification Opportunities for NH Foods and Franklin Credit
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Franklin Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Credit Mana and NH Foods 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 NH Foods Ltd are associated (or correlated) with Franklin Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Credit Mana has no effect on the direction of NH Foods i.e., NH Foods and Franklin Credit go up and down completely randomly.
Pair Corralation between NH Foods and Franklin Credit
Assuming the 90 days horizon NH Foods is expected to generate 17.86 times less return on investment than Franklin Credit. But when comparing it to its historical volatility, NH Foods Ltd is 31.38 times less risky than Franklin Credit. It trades about 0.09 of its potential returns per unit of risk. Franklin Credit Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Franklin Credit Management on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Franklin Credit Management or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Franklin Credit Management
Performance |
| Timeline |
| NH Foods |
| Franklin Credit Mana |
NH Foods and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Franklin Credit
The main advantage of trading using opposite NH Foods and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Franklin Credit 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 Credit will offset losses from the drop in Franklin Credit's long position.| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. General Mills |
| Franklin Credit vs. Global Healthcare REIT | Franklin Credit vs. Freedom Bank of | Franklin Credit vs. Hinto Energy | Franklin Credit vs. Ensurge |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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