Correlation Between Proficient Auto and Franklin Credit
Can any of the company-specific risk be diversified away by investing in both Proficient Auto 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 Proficient Auto and Franklin Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and Franklin Credit Management, you can compare the effects of market volatilities on Proficient Auto 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 Proficient Auto with a short position of Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Franklin Credit.
Diversification Opportunities for Proficient Auto and Franklin Credit
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Proficient and Franklin is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, 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 Proficient Auto 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 Proficient Auto Logistics, 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 Proficient Auto i.e., Proficient Auto and Franklin Credit go up and down completely randomly.
Pair Corralation between Proficient Auto and Franklin Credit
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the Franklin Credit. But the stock apears to be less risky and, when comparing its historical volatility, Proficient Auto Logistics, is 3.37 times less risky than Franklin Credit. The stock trades about -0.05 of its potential returns per unit of risk. The Franklin Credit Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Franklin Credit Management on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Credit Management or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 57.66% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. Franklin Credit Management
Performance |
| Timeline |
| Proficient Auto Logi |
| Franklin Credit Mana |
Proficient Auto and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and Franklin Credit
The main advantage of trading using opposite Proficient Auto and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto 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.| Proficient Auto vs. Sea | Proficient Auto vs. Simpson Manufacturing | Proficient Auto vs. LB Foster | Proficient Auto vs. Meiwu Technology Co |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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