Correlation Between Yokogawa Electric and Franklin Electric
Can any of the company-specific risk be diversified away by investing in both Yokogawa Electric and Franklin Electric 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 Yokogawa Electric and Franklin Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yokogawa Electric and Franklin Electric Co, you can compare the effects of market volatilities on Yokogawa Electric and Franklin Electric 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 Yokogawa Electric with a short position of Franklin Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yokogawa Electric and Franklin Electric.
Diversification Opportunities for Yokogawa Electric and Franklin Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yokogawa and Franklin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yokogawa Electric and Franklin Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Electric and Yokogawa Electric 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 Yokogawa Electric are associated (or correlated) with Franklin Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Electric has no effect on the direction of Yokogawa Electric i.e., Yokogawa Electric and Franklin Electric go up and down completely randomly.
Pair Corralation between Yokogawa Electric and Franklin Electric
If you would invest 10,267 in Franklin Electric Co on August 29, 2024 and sell it today you would earn a total of 537.00 from holding Franklin Electric Co or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Yokogawa Electric vs. Franklin Electric Co
Performance |
| Timeline |
| Yokogawa Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Electric |
Yokogawa Electric and Franklin Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yokogawa Electric and Franklin Electric
The main advantage of trading using opposite Yokogawa Electric and Franklin Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yokogawa Electric position performs unexpectedly, Franklin Electric 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 Electric will offset losses from the drop in Franklin Electric's long position.| Yokogawa Electric vs. Daifuku Co | Yokogawa Electric vs. Eaton PLC | Yokogawa Electric vs. Yokogawa Electric Corp | Yokogawa Electric vs. Nidec |
| Franklin Electric vs. Parker Hannifin | Franklin Electric vs. Capital Income Builder | Franklin Electric vs. Direxion Daily FTSE | Franklin Electric vs. Dodge Global Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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