Franklin Credit Management Stock Volatility
| FCRM Stock | USD 0.11 0.00 0.00% |
Franklin Credit appears to be out of control, given 3 months investment horizon. Franklin Credit Mana secures Sharpe Ratio (or Efficiency) of 0.058, which denotes the company had a 0.058% return per unit of standard deviation over the last 3 months. We have found sixteen technical indicators for Franklin Credit Management, which you can use to evaluate the volatility of the firm. Please utilize Franklin Credit's Mean Deviation of 1.14, standard deviation of 4.04, and Coefficient Of Variation of 1764.23 to check if our risk estimates are consistent with your expectations. Key indicators related to Franklin Credit's volatility include:
510 Days Market Risk | Chance Of Distress | 510 Days Economic Sensitivity |
Franklin Credit Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Franklin daily returns, and it is calculated using variance and standard deviation. We also use Franklin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Franklin Credit volatility.
Franklin |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Franklin Credit can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Franklin Credit at lower prices. For example, an investor can purchase Franklin stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Franklin Credit's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Franklin Pink Sheet
| 0.66 | MMM | 3M Company Fiscal Year End 28th of January 2025 | PairCorr |
| 0.56 | QLGN | Qualigen Therapeutics Trending | PairCorr |
| 0.51 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.48 | SGD | Safe and Green | PairCorr |
| 0.32 | PG | Procter Gamble | PairCorr |
| 0.31 | MULN | Mullen Automotive | PairCorr |
Franklin Credit Market Sensitivity And Downside Risk
Franklin Credit's beta coefficient measures the volatility of Franklin pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Franklin pink sheet's returns against your selected market. In other words, Franklin Credit's beta of -1.05 provides an investor with an approximation of how much risk Franklin Credit pink sheet can potentially add to one of your existing portfolios. Franklin Credit Management exhibits very low volatility with skewness of -1.21 and kurtosis of 23.34. Franklin Credit Management is a potential penny stock. Although Franklin Credit may be in fact a good instrument to invest, many penny pink sheets are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Franklin Credit Management. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Franklin instrument if you perfectly time your entry and exit. However, remember that penny pink sheets that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Franklin Credit Mana Demand TrendCheck current 90 days Franklin Credit correlation with market (Dow Jones Industrial)Franklin Beta |
Franklin standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 4.13 |
It is essential to understand the difference between upside risk (as represented by Franklin Credit's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Franklin Credit's daily returns or price. Since the actual investment returns on holding a position in franklin pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Franklin Credit.
Franklin Credit Mana Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Franklin Credit pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Franklin Credit's price changes. Investors will then calculate the volatility of Franklin Credit's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Franklin Credit's volatility:
Historical Volatility
This type of pink sheet volatility measures Franklin Credit's fluctuations based on previous trends. It's commonly used to predict Franklin Credit's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Franklin Credit's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Franklin Credit's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Franklin Credit Mana Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Franklin Credit Projected Return Density Against Market
Given the investment horizon of 90 days Franklin Credit Management has a beta of -1.0541 . This usually indicatesMost traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Franklin Credit or Thrifts & Mortgage Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Franklin Credit's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Franklin pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Franklin Credit Management has an alpha of 0.3439, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Franklin Credit Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Franklin Credit Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Franklin Credit is 1724.16. The daily returns are distributed with a variance of 17.09 and standard deviation of 4.13. The mean deviation of Franklin Credit Management is currently at 1.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | -1.05 | |
σ | Overall volatility | 4.13 | |
Ir | Information ratio | 0.02 |
Franklin Credit Pink Sheet Return Volatility
Franklin Credit historical daily return volatility represents how much of Franklin Credit pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.1338% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Franklin Credit Volatility
Volatility is a rate at which the price of Franklin Credit or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Franklin Credit may increase or decrease. In other words, similar to Franklin's beta indicator, it measures the risk of Franklin Credit and helps estimate the fluctuations that may happen in a short period of time. So if prices of Franklin Credit fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Franklin Credit Management Corporation operates as a specialty consumer finance company in the United States. Franklin Credit Management Corporation was incorporated in 1988 and is based in Jersey City, New Jersey. Franklin Credit operates under Mortgage Finance classification in the United States and is traded on OTC Exchange. It employs 54 people.
Franklin Credit's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Franklin Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Franklin Credit's price varies over time.
3 ways to utilize Franklin Credit's volatility to invest better
Higher Franklin Credit's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Franklin Credit Mana stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Franklin Credit Mana stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Franklin Credit Mana investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Franklin Credit's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Franklin Credit's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Franklin Credit Investment Opportunity
Franklin Credit Management has a volatility of 4.13 and is 5.29 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Franklin Credit Management is lower than 36 percent of all global equities and portfolios over the last 90 days. You can use Franklin Credit Management to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Franklin Credit to be traded at $0.1089 in 90 days.Good diversification
The correlation between Franklin Credit Management and DJI is -0.2 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Credit Management and DJI in the same portfolio, assuming nothing else is changed.
Franklin Credit Additional Risk Indicators
The analysis of Franklin Credit's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Franklin Credit's investment and either accepting that risk or mitigating it. Along with some common measures of Franklin Credit pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0514 | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 1.14 | |||
| Coefficient Of Variation | 1764.23 | |||
| Standard Deviation | 4.04 | |||
| Variance | 16.3 | |||
| Information Ratio | 0.0248 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Franklin Credit Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Franklin Credit as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Franklin Credit's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Franklin Credit's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Franklin Credit Management.
Other Information on Investing in Franklin Pink Sheet
Franklin Credit financial ratios help investors to determine whether Franklin Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Franklin with respect to the benefits of owning Franklin Credit security.