Correlation Between SOUTHWESTERN and Franklin Wireless
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By analyzing existing cross correlation between SOUTHWESTERN ELEC PWR and Franklin Wireless Corp, you can compare the effects of market volatilities on SOUTHWESTERN 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 SOUTHWESTERN with a short position of Franklin Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHWESTERN and Franklin Wireless.
Diversification Opportunities for SOUTHWESTERN and Franklin Wireless
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between SOUTHWESTERN and Franklin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHWESTERN ELEC PWR 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 SOUTHWESTERN 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 SOUTHWESTERN ELEC PWR 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 SOUTHWESTERN i.e., SOUTHWESTERN and Franklin Wireless go up and down completely randomly.
Pair Corralation between SOUTHWESTERN and Franklin Wireless
Assuming the 90 days trading horizon SOUTHWESTERN ELEC PWR is expected to generate 19.72 times more return on investment than Franklin Wireless. However, SOUTHWESTERN is 19.72 times more volatile than Franklin Wireless Corp. It trades about 0.04 of its potential returns per unit of risk. Franklin Wireless Corp is currently generating about 0.01 per unit of risk. If you would invest 9,229 in SOUTHWESTERN ELEC PWR on September 14, 2024 and sell it today you would earn a total of 116.00 from holding SOUTHWESTERN ELEC PWR or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.48% |
| Values | Daily Returns |
SOUTHWESTERN ELEC PWR vs. Franklin Wireless Corp
Performance |
| Timeline |
| SOUTHWESTERN ELEC PWR |
| Franklin Wireless Corp |
SOUTHWESTERN and Franklin Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHWESTERN and Franklin Wireless
The main advantage of trading using opposite SOUTHWESTERN and Franklin Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHWESTERN 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.| SOUTHWESTERN vs. Delek Logistics Partners | SOUTHWESTERN vs. Paltalk | SOUTHWESTERN vs. United Airlines Holdings | SOUTHWESTERN vs. Bright Scholar Education |
| Franklin Wireless vs. Passage Bio | Franklin Wireless vs. Black Diamond Therapeutics | Franklin Wireless vs. Alector | Franklin Wireless vs. Century Therapeutics |
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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