Correlation Between WELLTOWER and Franklin Credit
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By analyzing existing cross correlation between WELLTOWER INC 425 and Franklin Credit Management, you can compare the effects of market volatilities on WELLTOWER 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 WELLTOWER with a short position of Franklin Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of WELLTOWER and Franklin Credit.
Diversification Opportunities for WELLTOWER and Franklin Credit
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WELLTOWER and Franklin is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding WELLTOWER INC 425 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 WELLTOWER 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 WELLTOWER INC 425 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 WELLTOWER i.e., WELLTOWER and Franklin Credit go up and down completely randomly.
Pair Corralation between WELLTOWER and Franklin Credit
Assuming the 90 days trading horizon WELLTOWER INC 425 is expected to under-perform the Franklin Credit. But the bond apears to be less risky and, when comparing its historical volatility, WELLTOWER INC 425 is 47.26 times less risky than Franklin Credit. The bond trades about -0.13 of its potential returns per unit of risk. The Franklin Credit Management is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Franklin Credit Management on November 30, 2024 and sell it today you would lose (1.00) from holding Franklin Credit Management or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
WELLTOWER INC 425 vs. Franklin Credit Management
Performance |
| Timeline |
| WELLTOWER INC 425 |
| Franklin Credit Mana |
WELLTOWER and Franklin Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WELLTOWER and Franklin Credit
The main advantage of trading using opposite WELLTOWER and Franklin Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WELLTOWER 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.| WELLTOWER vs. Energold Drilling Corp | WELLTOWER vs. Awilco Drilling PLC | WELLTOWER vs. Major Drilling Group | WELLTOWER vs. Barrick Gold Corp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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