Correlation Between Franklin Wireless and SPECTRA
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By analyzing existing cross correlation between Franklin Wireless Corp and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Franklin Wireless and SPECTRA 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 Franklin Wireless with a short position of SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Wireless and SPECTRA.
Diversification Opportunities for Franklin Wireless and SPECTRA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and SPECTRA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Wireless Corp and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS and Franklin Wireless 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 Franklin Wireless Corp are associated (or correlated) with SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Franklin Wireless i.e., Franklin Wireless and SPECTRA go up and down completely randomly.
Pair Corralation between Franklin Wireless and SPECTRA
Given the investment horizon of 90 days Franklin Wireless Corp is expected to generate 2.19 times more return on investment than SPECTRA. However, Franklin Wireless is 2.19 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.01 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.1 per unit of risk. If you would invest 450.00 in Franklin Wireless Corp on September 25, 2024 and sell it today you would earn a total of 1.00 from holding Franklin Wireless Corp or generate 0.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 73.44% |
Values | Daily Returns |
Franklin Wireless Corp vs. SPECTRA ENERGY PARTNERS
Performance |
Timeline |
Franklin Wireless Corp |
SPECTRA ENERGY PARTNERS |
Franklin Wireless and SPECTRA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Franklin Wireless and SPECTRA
The main advantage of trading using opposite Franklin Wireless and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Wireless position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.Franklin Wireless vs. Desktop Metal | Franklin Wireless vs. Fabrinet | Franklin Wireless vs. Kimball Electronics | Franklin Wireless vs. Knowles Cor |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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