Correlation Between SNDL and Franklin Wireless
Can any of the company-specific risk be diversified away by investing in both SNDL 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 SNDL and Franklin Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SNDL Inc and Franklin Wireless Corp, you can compare the effects of market volatilities on SNDL 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 SNDL with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNDL and Franklin Wireless.
Diversification Opportunities for SNDL and Franklin Wireless
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SNDL and Franklin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SNDL Inc 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 SNDL 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 SNDL Inc 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 SNDL i.e., SNDL and Franklin Wireless go up and down completely randomly.
Pair Corralation between SNDL and Franklin Wireless
Given the investment horizon of 90 days SNDL is expected to generate 6.31 times less return on investment than Franklin Wireless. In addition to that, SNDL is 1.63 times more volatile than Franklin Wireless Corp. It trades about 0.0 of its total potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.03 per unit of volatility. If you would invest 329.00 in Franklin Wireless Corp on August 27, 2024 and sell it today you would earn a total of 96.00 from holding Franklin Wireless Corp or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SNDL Inc vs. Franklin Wireless Corp
Performance |
| Timeline |
| SNDL Inc |
| Franklin Wireless Corp |
SNDL and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SNDL and Franklin Wireless
The main advantage of trading using opposite SNDL and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNDL 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.The idea behind SNDL Inc and Franklin Wireless Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |